DraftKings (DKNG) Surges 7% After Saying It Won't Bid for Entain (GMVHF)

Shares of DraftKings (NASDAQ: DKNG) are up over 7% in pre-open Tuesday after the company said it will not make a firm offer for Entain (OTC: GMVHF).

"After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time. Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market,” said Jason Robins DraftKings CEO, Co-Founder and Chairman of the Board.

DraftKings is now bound by the restrictions for six months following the date of this announcement.

Last month, CNBC reported that DKNG made a $20 billion offer to acquire the British sports betting and gambling company Entain. A reported bid came after Entain had rejected an $11 billion offer from MGM Resorts (NYSE: MGM) earlier this year.

Shares of Entain are down 7.8% in London today.

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