The sudden resignation of Gavin Isaacs as CEO of Entain has reignited speculation regarding a potential takeover bid from MGM Resorts. Isaacs' departure in February 2025, just five months after assuming the role, has added to the turbulence surrounding the company, which has already seen a 19.3% decline in share price over the past year.

This uncertainty has once again put MGM’s interest in acquiring Entain or its stake in BetMGM into the spotlight. With Entain’s market valuation significantly lower than when MGM last attempted an acquisition, industry analysts believe that this could be a strategic moment for the casino giant to make another move.

Leadership Shakeup at Entain Fuels Speculation

CEO Resignation Raises Questions
The resignation of Gavin Isaacs, who had only been in the position for five months, has led to heightened uncertainty within Entain. The sudden nature of his exit has fueled speculation about corporate instability and whether Entain could become a prime acquisition target.

Entain’s share price has declined 19.3% over the past year, making it a more affordable target for potential buyers.
The leadership vacuum at the top raises concerns about corporate direction and strategic decision-making.
Industry watchers believe that MGM may see this as an opportunity to revisit its acquisition plans.
MGM’s Previous Bid and Renewed Interest
MGM Resorts made an acquisition attempt in 2021, offering £8.1 billion for Entain, but the deal was rejected as undervalued. Since then, Entain’s valuation has declined sharply, with its current market capitalization standing at £4.7 billion.

In 2021, Entain was valued at £8.1 billion, but today’s figure is substantially lower, making a new offer more financially viable.
DraftKings also pursued an acquisition in 2021, proposing a £18.4 billion cash-and-stock deal, but ultimately backed out.
Given the dramatic decline in Entain’s valuation, analysts believe that MGM may now be in a stronger position to negotiate.

BetMGM Buyout: A More Likely Scenario?

Strategic Value of BetMGM to MGM Resorts
Rather than acquiring all of Entain, MGM may focus on buying out Entain’s 50% stake in BetMGM, a joint venture between the two companies.

BetMGM holds a 14% market share in the U.S., making it one of the top three sports betting operators.
The company is projected to generate $2.4 billion-$2.5 billion in revenue for 2025.
For the first time, BetMGM is expected to turn a positive EBITDA this year, making it a more attractive investment for MGM.
With Entain’s leadership uncertain and its share price under pressure, MGM may see this as an ideal moment to acquire full control of BetMGM, solidifying its position in the highly lucrative U.S. online betting market.

BetMGM's Valuation and MGM’s Potential Offer
Industry analysts estimate that Entain’s 50% stake in BetMGM is valued between $4.2 billion and $5.6 billion.

If MGM were to acquire this stake:

It would gain full control of BetMGM, allowing it to shape the company's future direction.
It would eliminate the complexities of a joint venture, streamlining operations and strategy.
It would allow MGM to capture BetMGM’s long-term revenue growth without splitting profits with Entain.
This move aligns with MGM’s broader strategy of expanding its digital gaming and sports betting footprint, a segment that is becoming increasingly critical to the company’s growth.

Entain’s Valuation Decline: A Buying Opportunity?

Current Market Conditions Favor MGM
Entain’s enterprise value has fallen to an estimated £10.8 billion-£12.4 billion, a far cry from the £18.4 billion bid by DraftKings in 2021.

This steep drop in valuation presents a strategic buying opportunity for MGM, whether it chooses to:

Acquire BetMGM’s 50% stake for full control of the joint venture.
Launch a full acquisition bid for Entain, leveraging its lower valuation.
Given the competitive landscape of sports betting and digital gaming, securing a stronger position through BetMGM could be a major strategic win for MGM Resorts.