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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>\nOther 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>\nMGM 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":"\n
MGM Stock Could Be Dented Due To DraftKings' Pursuit Of Entain<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n