Entain, one of the biggest gambling companies in the United Kingdom, is reportedly considering selling some of its brands. People familiar with the matter told the Financial Times that the UK-based gambling powerhouse has hired Wall Street boutique advisory Moelis to advise the board on what brands to divest.
Entain is considering divesting assets to streamline its business operations and focus on core markets and brands, according to sources familiar with the matter. The move aims to determine which markets Entain will prioritize going forward.
Reports from the Financial Times suggest that only brands not integrated into Entain’s technology platform would be considered for sale, and potential disposals may not be necessary depending on the outcome of the review.
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Potential candidates for sale include BetCity in the Netherlands, Ladbrokes in Australia, Enlabs in Sweden, and CrystalBet in Georgia. While brands like Super Sport and STS are performing well, they are not on the main platform and may also be considered for divestment.
Non-integrated brands accounted for around a third of Entain’s revenue in the first half of 2023. When contacted by the Financial Times, both Entain and Moelis declined to comment on the matter.
Entain Eyeing Changes to Its Business
Recent reports have indicated that Entain may be considering selling its PartyPoker brand, as well as potentially divesting its stake in the BetMGM brand, a joint venture with MGM Resorts International.
These developments follow a period of intense merger and acquisition activities that had a negative impact on the company’s overall performance. Financially, Entain was also affected by the resolution of an investigation related to its past operations in Turkey.
As part of a deferred prosecution agreement with the Crown Prosecution Service (CPS), Entain committed to exiting unregulated markets, leading to its withdrawal from more than 140 jurisdictions.
Amid these changes, Entain saw the departure of CEO Jette Nygaard-Andersen during a period of declining share prices.
In more recent updates, the company has strengthened its leadership team by appointing Ronald J. Kramer, former president of Wynn Resorts, to its board of directors.
