{"id":187585,"date":"2021-10-01T10:56:13","date_gmt":"2021-10-01T17:56:13","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=187585"},"modified":"2021-10-01T12:04:52","modified_gmt":"2021-10-01T19:04:52","slug":"mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/","title":{"rendered":"MGM Stock Downgraded as DraftKings’ Entain Bid Puts Casino Operator in Tough Position"},"content":{"rendered":"

MGM Resorts International (NYSE:MGM) stock is trading higher today, joining other gaming equities to the upside despite an analyst downgrade of the Bellagio operator.<\/p>\n

\"MGM
DraftKings’ bid for Entain has MGM in a tough spot. An analyst says outcomes aren’t appealing for the gaming company. (Image: Twitter)<\/figcaption><\/figure>\n

In a note to clients today, Susquehanna Financial Joseph Stauff cuts his rating on MGM stock to \u201cnegative\u201d from \u201cneutral\u201d with a $36 price target. That’s about 24 percent below where the shares currently reside, and well-below the consensus price forecast of $47.66.<\/p>\n

Stauff’s downgrade of the casino giant is put in simple terms. The analyst sees DraftKings\u2019 (NASDAQ:DKNG) pursuit of Entain Plc (OTC:GMVHY) — MGM’s partner on the BetMGM venture — as potentially diminishing MGM’s online prospects.<\/p>\n

We see DKNG\u2019s bid for Entain as consistently aggressive, out-maneuvering MGM for control of BetMGM and weakening its digital prospects in all likely scenarios,\u201d said the analyst.<\/p><\/blockquote>\n

Late last month, DraftKings stunned markets with a $20.5 billion offer for Entain, which the target rejected. Showing it’s committed to consummating the marriage, the Boston-based sportsbook operator is floating a $22.4 billion<\/a> cash and stock proposal for the Ladbrokes owner. Under UK law, DraftKings has until Oct. 19 to make a formal offer for Entain.<\/p>\n

Risks for MGM Because DraftKings Isn’t Coming ‘in Peace’<\/h2>\n

While it’s been acknowledged that DraftKings’ bid for Entain puts MGM is tough spot<\/a>, consensus is building that biggest hit to MGM in this scenario is that it will need to find a new technology partner for BetMGM.<\/p>\n

Some market observers are putting a positive spin on things, from the MGM perspective, noting the gaming company must approve a takeover of BetMGM if that’s what DraftKings is angling for. If that’s not the case, MGM has cards to play<\/a> to get what it wants, which is full control of BetMGM.<\/p>\n

\n

Susquehanna’s Stauff offers a compelling, contrarian view, saying the consensus view \u201cincorrectly assumes DraftKings comes in peace,\u201d implying it’s not reasonable to speculate DraftKings is pursuing Entain simply for technology, and that the suitor will go out of its way to accommodate MGM — one of its biggest competitors.<\/p>\n<\/div>\n

Stauff says even the best-case scenario for MGM is \u201cstill negative,\u201d because if regulators or MGM itself block DraftKings’ bid for Entain, the casino company could still be looking at a substantial margin hit at BetMGM.<\/strong><\/p>\n

Other Unappealing Outcomes for MGM<\/h2>\n

To be fair, Susquehanna previously spoke glowingly about DraftKings’ run at Entain, framing it in terns of near-term pain, long-term gain for the stock.<\/p>\n

For his part, Stauff sees one of two scenarios playing out. Either DraftKings buys Entain and accepts the 50 percent stake in BetMGM as a step toward owning the iGaming and sports wagering entity outright, or MGM is forced to come over the top and bid more than $25 billion for Entain. The analyst says either option could lead to \u201cnotable downside in MGM.\u201d<\/strong><\/p>\n

MGM offered $11.06 billion for Entain in January and was rejected. But it was widely expected the suitor would float another bid<\/a> before the end of this year.<\/p>\n","protected":false},"excerpt":{"rendered":"

MGM Resorts International (NYSE:MGM) stock is trading higher today, joining other gaming equities to the upside despite an analyst downgrade of the Bellagio operator. In a note to clients today, Susquehanna Financial Joseph Stauff cuts his rating on MGM stock to \u201cnegative\u201d from \u201cneutral\u201d with a $36 price target. That’s about 24 percent below where […]<\/p>\n","protected":false},"author":46,"featured_media":187587,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093],"tags":[],"acf":[],"yoast_head":"\nMGM Stock Could Be Dented Due To DraftKings' Pursuit Of Entain<\/title>\n<meta name=\"description\" content=\"MGM stock downgraded as analyst says company may need to bid for Entain as other outcomes aren't attractive.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MGM Stock Could Be Dented Due To DraftKings' Pursuit Of Entain\" \/>\n<meta property=\"og:description\" content=\"MGM stock downgraded as analyst says company may need to bid for Entain as other outcomes aren't attractive.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-01T17:56:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-01T19:04:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/DKNG.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/\",\"url\":\"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/\",\"name\":\"MGM Stock Could Be Dented Due To DraftKings' Pursuit Of Entain\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/DKNG.jpg\",\"datePublished\":\"2021-10-01T17:56:13+00:00\",\"dateModified\":\"2021-10-01T19:04:52+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"MGM stock downgraded as analyst says company may need to bid for Entain as other outcomes aren't attractive.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/DKNG.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/DKNG.jpg\",\"width\":1200,\"height\":675,\"caption\":\"DraftKings' bid for Entain has MGM in a tough spot. An analyst says outcomes aren't appealing for the gaming company. (Image: Twitter)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"MGM Stock Downgraded as DraftKings’ Entain Bid Puts Casino Operator in Tough Position\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"MGM Stock Could Be Dented Due To DraftKings' Pursuit Of Entain","description":"MGM stock downgraded as analyst says company may need to bid for Entain as other outcomes aren't attractive.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"MGM Stock Could Be Dented Due To DraftKings' Pursuit Of Entain","og_description":"MGM stock downgraded as analyst says company may need to bid for Entain as other outcomes aren't attractive.","og_url":"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2021-10-01T17:56:13+00:00","article_modified_time":"2021-10-01T19:04:52+00:00","og_image":[{"width":1200,"height":675,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/DKNG.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/","url":"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/","name":"MGM Stock Could Be Dented Due To DraftKings' Pursuit Of Entain","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/DKNG.jpg","datePublished":"2021-10-01T17:56:13+00:00","dateModified":"2021-10-01T19:04:52+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"MGM stock downgraded as analyst says company may need to bid for Entain as other outcomes aren't attractive.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/DKNG.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/DKNG.jpg","width":1200,"height":675,"caption":"DraftKings' bid for Entain has MGM in a tough spot. An analyst says outcomes aren't appealing for the gaming company. (Image: Twitter)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/mgm-stock-could-be-dented-due-to-draftkings-pursuit-of-entain\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"MGM Stock Downgraded as DraftKings’ Entain Bid Puts Casino Operator in Tough Position"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/187585"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=187585"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/187585\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/187587"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=187585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=187585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=187585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}