Entain PLC announced that CEO Shay Segev has expressed his intention to leave the company by giving his notice. Mr. Segev is leaving the global sports betting and gaming group, formerly known as GVC Holdings PLC, to become co-CEO of private global sports streaming platform DAZN.
Under Mr. Segev’s contract, he has a six-month period to remain in his position or until his successor is in his place. The Board is currently seeking his replacement.
Chairman Barry Gibson expressed regret that he had to let the CEO go, but claimed that Entain cannot match the reward Mr. Segev has been promised on DAZN.
In his statement on his departure, Shay Segev, Entain CEO, shared that he is sad to leave after having worked for the company for five years. He explained that the DAZN offering gives him a different kind of opportunity.
Mr. Segev also made it clear that his departure had nothing to do with recent interest from MGM Resorts. He added: “I fully support the Board’s decision to reject your proposal. Entain has a great team of leaders and an exciting future ahead of it through its growth and sustainability strategy, and I will do my best to continue supporting the Company. ”
No changes to MGM Resorts offer
According to Mr. Gibson, Mr. Segev’s resignation will not change Entain’s position in the MGM Resorts International deal. “The Board remains unanimous in our opinion 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 for $ 11 billion, which was still rejected. The British online gambling house left the door open for further discussion.
In response, MGM Resorts began discussing ways to make the deal more attractive by offering stocks in addition to cash.
In case Entain prefers a monetary gain, Barry Diller, billionaire and president of IAC, the largest shareholder of MGM Resort, declared that his company is ready to invest more at the US casino giant for the deal to be successful.
The partnership between MGM Resorts and Entain will benefit to both companies. A future merger will provide a supreme quality online casino and sportsbook experience for its customers.
Regardless of the benefit to the British online gambling house, there is still no confirmation whether the merger will take place anytime soon. Mr Diller said he is skeptical that the US casino group will successfully take over the UK’s online gambling business, Entain. But the billionaire added that whatever happens to the deal, MGM Resorts still has plenty of opportunities ahead of it.
Source: “Change of Director”, Entain Group, January 11, 2021