Entain CEO Shay Segev Resigns But It’s Not Related to MGM Takeover
Shay Segev stepping down as Entain CEO is nothing to do with the potential MGM takeover according to Entain’s chairman.
Segev only took over in the Entain (formerly GVC Holdings) hot seat in July 2020 but has handed in his notice. Entain announced the news via a press release to the London Stock Exchange as per regulatory rules.
Barry Gibson is the Chairman of Entain. Gibson explained Segev plans to stay in his role until a successor is found or until the end of his six-month notice period.
“We are sorry that Shay has decided to leave us but recognize that we cannot match the rewards that he has been promised. I can confirm that this changes nothing with respect to the Board’s view of the recent proposal from MGM Resorts International to acquire Entain. The Board remains unanimous in our view that the proposal significantly undervalues the company and its prospects,” Gibson said.
Segev reiterated Gibson’s claims that the decision has nothing to do with the potential MGM takeover.
“I will be sad to leave the company after five years but I have been offered a role which offers me a very different type of opportunity. Entain is in great shape after the successful launch of our new strategy. I also want to emphasize that the recent interest from MGM Resorts has had absolutely no bearing on my decision, and I fully support the board’s decision to reject their proposal. Entain has a great team of leaders and an exciting future ahead though its growth and sustainability strategy, and I will do all I can to continue to support the company.”
A Career In Sports Streaming Beckons For Segev
Segev has a wealth of experience in the gaming world. He worked at Videobet for eight-and-a-half years as the company’s Chief Executive Officer. Segev held the position of Chief Operating Officer for Playtech at the same time.
He became the Chief Strategy Officer for Coral in June 2015 before becoming the Chief Operating Officer for GVC Holdings in March 2016. GVC promoted Segev to Chief Executive Officer in July 2020 before rebranding as Entain.
It seems strange Segev leaving after only seven months in his current role. It is interesting how Gibson claimed Entain can’t match the deal Segev has been offered. Entain hasn’t filed its annual report for the current financial year so we don’t know Segev’s salary. Comparing it to former CEO Kenny Alexander, however, would mean he earns around £4.8 million ($8.29 million).
DAZN is the company Segev is heading to, a sports streaming service. Perform launched DAZN in Germany, Austria, and Switzerland in August 2016. It now streams live sports to countries around the world.
The story of DAZN offering Segev a package Entain can’t match doesn’t hold water. DAZN is struggling financially because COVID-19 has hit it hard. The company sought further investment in May 2020 and sold stakes in its biggest websites in October 2020. DAZN lost US$630 million ($1.08 billion) in 2018 but Len Blavatnik is the majority shareholder and he’s worth US$26.6 billion ($45.95 billion).
MGM Resorts Hoping to Acquire Entain
Entain’s share price soared last week after speculation of a takeover bid from MGM Resorts. Entain ended the speculation by informing investors it is in talks about a potential takeover.
MGM provisionally offered £8.1 billion ($13.99 billion), a 25% premium on Entain’s share price on December 31, 2020. The American giants need to seriously increase its offer for Entain to accept it.
British takeover rules mean MGM has until February 1 to make a formal offer or back away. They won’t go away, so an increased offer is most likely. MGM today announced a major shareholder is happy to pump US$1 billion to the company. That could be enough to appease Entain’s shareholders and board of directors.