The gambling and sports betting group Entain plc, which was formerly known as GVC Holdings, officially announced yesterday that its Chief Executive Officer (CEO) Shay Segev is to leave the company. As Entain revealed, Mr Segev has given notice of his decision to step down from his role in the British gambling group and occupy the Co-CEO position at DAZN, a privately-owned international sports streaming platform.
Mr Shay will have a 6-month notice period and is set to remain in the Chief Executive role for the aforementioned period or until a successor is found to occupy his place. As announced by Entain, the group’s board has given the start of a process to find his most suitable successor.
At the time when the official announcement was made, the company’s CEO explained that he was leaving the group following an offer for a role that offered him different perspectives. Mr Segev further explained that the recent takeover bid made by MGM Resorts and the US casino giant’s interest in acquiring the British gambling group had nothing to do with his decision. He also explained that he fully backs the board’s decision to reject the acquisition offer and praised the company for being “in great shape” after its new strategy was rolled out.
The company’s Chairman, Barry Gibson, explained that the company and its board have understood they were unable to match the rewards Mr Segev had been promised.
Entain Rejected MGM Resort’s £8-Billion Takeover Bid
The announcement came as a surprise to everyone in the industry, especially considering the fact that the Ladbrokes Coral’s owner has become a takeover target of the US casino group MGM Resorts. With Mr Segev handing in his notice at such a time, a lot of questions occurred.
As Casino Guardian already reported, MGM Resort has recently made a takeover offer for the British gambling group. The latter’s board, however, rejected the offer saying it was undervaluing the company and its prospects. Having this in mind, the departure of the acquisition target’s CEO at such a turbulent time for the company is undoubtedly awkward in its timing, although a 6-month notice period was announced.
Despite the fact that the chairman of Entain claimed Mr Segev’s departure would not change anything in the company’s prospects and strategies in regard to the takeover bid made by MGM Resorts, analysts believe that some questions remain unanswered for the time being.
UK gambling stocks have become extremely attractive to some US gambling operators lately. After the liberalisation of the sports betting sector, an increasing number of US gambling businesses have been looking for new ways to capitalise on the expertise of some British companies in online gambling and sports betting products. On the other hand, UK-based gambling groups have been willing to expand their presence in new markets on a global scale because the country’s gambling regulation has increasingly become stricter over the last few years.