Entain Mulls Multiple Asset Sale to Placate Activist Investors

British online gambling giant Entain is looking to offload an assortment of its overseas brands as it seeks to pacify activist investors by focusing on its core operations.

Activists believe a leaner Entain would be in a better position to be sold or broken up. In 2021, the company received takeover bids from DraftKings and MGM, its joint venture partner in BetMGM. Both offers valued the group at a much higher price than its current market cap.

These are all brands that don’t use Entain’s proprietary technology platform. Entain hopes a sale would allow it to focus on core markets, such as the UK and Germany.

Dissenting Voices

The news comes two days after Sky News reported Entain was working with advisers from Oakvale Capital on a possible sale of the once-mighty PartyPoker brand.

Activists have built an increasingly prominent position in Entain, and have expressed frustration with the company’s recent performance. That’s while questioning a series of misfiring acquisitions and missed opportunities.

Last year, Entain established a capital allocation committee to pacify activist investors. One of the most vocal of these, Eminence Capital founder Ricky Sandler, has a seat on the committee.

Party Pooper

Meanwhile, PartyPoker, which operates in North America in the New Jersey, Pennsylvania, Michigan, and Ontario markets, as well as in numerous regulated markets worldwide, also appears to be surplus to requirements.

PartyPoker never quite recovered, and has been losing ground to competitors like PokerStars and GGPoker ever since. In 2011, it merged with bwin to become bwin.party, which was acquired by Entain, then known as GVC Holdings, in 2016 for £1.1 billion (then US$1.6 billion).

PartyPoker is expected to sell for around £150 million ($US191 million).