DraftKings Buys in Britain

DraftKings (NASDAQ:DKNG) is making a $20 billion offer to acquire U.K. online sports betting company Entain, according to reports out Tuesday morning.

The offer is largely in DraftKings stock, along with cash, according to the sources.

Entain shares jumped roughly 17% in London trading.

On Monday, before news of the deal, the enterprise value of Entain was about 13.2 billion pounds, or $18 billion.

In a filing with the London Stock Exchange, Entain’s board confirmed that it received a proposal from DraftKings, which would include a combination of stock and cash. The filing did not contain any information on the price of the offer.

The U.K. gaming company rejected an all-stock offer from MGM Resorts (NYSE:MGM) earlier this year worth $11 billion at the time. Entain said the deal significantly undervalued the company.

MGM and Entain maintain an online sports betting partnership in the U.S. called BetMGM.

While MGM is not involved with DraftKing’s bid for Entain, MGM’s consent is required for any deal involving the U.S. assets of Entain, according to people with knowledge of their partnership.

DKNG shares dwindled $3.91, or 6.9%, to $53.09.