This is an excerpt from Forbes’ daily newsletter Dealflow on major acquisitions, major mergers and other big finances. Want a new edition in your inbox every afternoon? Subscribe here..
So far in 2021, there is no shortage of major mergers. AT & T Announced plans to combine WarnerMedia Unit with discover With $ 43 billion in media transactions.Private equity tycoon plans to buy $ 34 billion Medline Industries.. Within 2 weeks Canadian Pacific Railway Won the bid war to buy Southern Kansas City For $ 27 billion. These megamergers were just a side effect of the “worst case” of trading terms realized in 2021 and caused a record surge in M & A activity.
And this week, several more identical-sized deals were announced, with reports that a pair of sports betting key names and private-equity fund collaborators are each targeting deals that could be worth more than $ 20 billion. It provided a reason to believe that it could be in progress.
Draft Kings Since the completion of the SPAC merger in the early days of the pandemic, stock prices have skyrocketed, making them one of the main beneficiaries of the continuing legitimate sports betting boom. We are currently trying to use some of that inventory.The company submitted a proposal to buy a UK-based rival earlier this week include With approximately $ 22.4 billion in cash and equities, it is a huge amount that provides the latest evidence of the industry’s range of current market opportunities.
Once a taboo business, sports betting seems to be on track for full legalization in major US professional sports leagues. Teams and broadcasters continue to do business with companies in this area, creating new, profitable sources of revenue. Experts estimate that overall revenue from legitimate sports betting in the United States could more than double between 2020 and 2021.
For now, it’s still like Wild West, and there are established Las Vegas brands such as: Caesars Entertainment When MGM Resorts International Draft Kings Fan Duel.. However, like many other industries, it seems likely that winners and losers will eventually emerge. DraftKings adds scale and new products to establish itself as a true industry leader by acquiring Entain, which offers online casino-style gaming in addition to betting on sports.
But blocking the UK business is not easy. Entain operates an existing joint venture in the United States under the banner of MGM Resorts. BetMGM.. Entain-Brand owners including: Ladbrokes, Bwin When PartyPoker— Rejecting a full takeover offer from MGM earlier this year, MGM said this week that it believes the partnership between Entain and DraftKings requires consent.
Another potential mega deal that was talked about this week comes from the world of healthcare.Co-owner Veritas Capital When Elliott Management Investigating their options for potential sales or IPOs Athenahealth According to a Bloomberg report, this could add value to the company to more than $ 20 billion. If a move happens, it will be the latest in a series of healthcare mega deals so far this year. It also brings enviable benefits to Veritas and Elliott, who worked together to acquire software developers for doctors and other healthcare professionals for just $ 5.7 billion within three years.
We’ve already mentioned Medline’s planned $ 34 billion sale Black stone, Carlyle Group When Hermann & Friedman.. Elsewhere in the healthcare sector, AstraZeneca Completed $ 39 Billion Acquisition Alexion Pharmaceuticals In July. Carlyle and H & F also recorded a major exit in this space as they agreed to sell their contract research institute in April. Drug development (Also known as PPD) NS Thermo Fisher Scientific For $ 17.4 billion. Varian Medical Systems, DuPont nutrition and health When Change health care It has also been the subject of over $ 10 billion worth of transactions so far this year.
Before the pandemic began, there was already a tendency to drive industry integration, including the adoption of digital products, the need to scale up and protect the supply chain. With the advent of the global health crisis, these tailwinds have become even stronger, with businesses and investors across the sector pursuing number security.
Earlier this year, there were rumors that WarnerMedia transactions could lead to a series of truly large-scale mergers and acquisitions. This is a $ 50 billion worth of transaction that has the potential to transform the industry. They haven’t happened. But it doesn’t have to be said that $ 20 billion isn’t eavesdropping. As discussions on these potential deals progress, the next few weeks have the potential to change the future of DraftKings, Enterin and Athena Heels forever.