DraftKings Makes $20 Billion Bid To Acquire U.K. Sports Betting Company Entain

DraftKings (NASDAQ:DKNG) has made a $20-billion U.S. offer to acquire British online sports betting company Entain.

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

MGM and Entain have an online sports betting partnership in the U.S. called "BetMGM." While MGM is not involved with DraftKings’ bid for Entain, MGM’s consent is required for any deal involving the U.S. assets of Entain, the company said in a news release.

Entain’s brands include U.K. poker and gambling companies Coral, Ladbrokes and PartyPoker.

Entain shares jumped about 18% in London trading on reports of the DraftKings offer. DraftKings shares closed 7.4% lower on the news.