MGM Resorts International and Grupo Globo have set to acquire leading Brazil-based bingo developer Bingão do Brasil. The acquisition has yet to secure certain regulatory approvals before it can close.
The Financial Terms Were Not Disclosed
Boa Lion, MGM and Grupo Globo’s joint Brazil-facing venture, has reportedly set out to acquire Bingão do Brasil from L.Eva Participações and other investors for an undisclosed sum. The M&A deal was announced via an Administrative Council for Economic Defence notice in Brazil’s Official Gazette.
The publication states that the agreement will see Boa Lion acquire the entirety of the bingo developer. However, the deal in question must still secure approvals from Brazil’s competitions regulator, CADE.
The acquisition of Bingão do Brasil, which is an emerging bingo business, will allow MGM and Globo to expand their local presence and enhance their BetMGM offerings with premium bingo products.
MGM has pursued local growth and a strong market share ever since the legalization of gambling in Brazil. The company teamed up with Globo to ensure itself a strong local foothold and launched the iconic BetMGM brand in the country last year.
People Submitted a Bid to Acquire MGM
In other news, Barry Diller’s People Inc. just put forward roughly $18 billion in an attempt to acquire MGM Resorts International. The bid was submitted on June 1, seeking to acquire all outstanding MGM shares that People doesn’t already own for $48.30 apiece. For context, People currently owns a 26.1% stake in MGM and is its largest shareholder.
The proposal, according to analysts, could result in a significant shift in strategy. However, experts suggested that the $18 billion price tag doesn’t properly reflect the true value of MGM Resorts.
The bid came at approximately the same time Fertitta Entertainment and Caesars Entertainment announced a historic merger. The two announcements imply that the American gaming industry is entering a time of intense consolidation.