Entain plc announced that Chief Executive Officer, Shay Segev expressed his intention to leave the company by giving his notice. Segev is leaving the global sports betting and gaming group, previously known as GVC Holdings PLC, to become Co-CEO of the private global sports streaming platform DAZN.
According to Segev’s contract, he has a six-month period to remain on his position or until a successor is in place. The Board is currently looking for his replacement.
Chairman, Barry Gibson expressed his regrets for having to let Chief Executive Officer leave, but he stated that Entain cannot match the reward Segev has been promised at DAZN.
In his statement regarding his leave, Shay Segev, CEO of Entain, shared that he is sad to leave after having worked five years for the company. He explained that the offer from DAZN gives him a different kind of opportunity.
Segev also made clear that him leaving had nothing to do with the recent interest from MGM Resorts. He added: “I fully support the Board’s decision to reject their proposal. Entain has a great team of leaders and an exciting future ahead through its growth and sustainability strategy, and I will do all I can to continue to support the Company.”
No Change for the MGM Resorts Deal
According to Gibson, Segev’s resigning will not change Entain’s position on the MGM Resorts International deal. “The Board remains unanimous in our view that the proposal significantly undervalues the Company and its prospects.”
Last year Entain turned down an offer made by the casino giant for $10 billion, stating that the cash price is too low. The initial offer was followed by another one for $11 billion, which was still rejected. The British Gambling Powerhouse left the door open for further discussion.
As a response, MGM Resorts started discussing ways to make the deal more appealing by offering shares, as well as cash.
In case Entain prefers a money profit, Barry Diller, billionaire and chairman of IAC, MGM Resort’s largest shareholder, stated that his company is ready to invest more into US casino giant, so that the deal will be successful.
The partnership between MGM Resorts and Entain will benefit both companies. A future merger will provide premium online casino and sports betting experience for their customers.
Regardless of the benefit for the British gambling powerhouse, there is still no confirmation if the merger will happen any time soon. Diller said that he is skeptical that the US casino group will successfully take over UK gambling business Entain. But the billionaire added that whatever happened to the deal, MGM Resorts still had a lot of opportunities ahead.
Source: “Director Change”, Entain Group, January 11, 2021
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