In order to become co-CEO of the international sports streaming network DAZN, Shay Segev declared his intention to leave the multinational gaming and sports betting company Entain.
Segev, who only assumed the position of CEO in July 2020 as Kenny Alexander stepped down after a 13-year tenure, asserts that MGM Resorts International’s recent involvement in the company did not affect the decision.
In stating that he fully supports the board in rejecting the proposal, the company adds that “that this changes nothing with respect to the board’s view of the recent proposal,” and that it remains “unanimous in our view that the proposal significantly undervalues the company and its prospects.”
Last week, MGM announced a proposed bid of 0.6 shares for each Entain share, which, on the basis of the trading prices on 31 December 2020, reflected a value of 1,383 pence for each Entain share and a 22 per cent premium on the share price of Entain.
Segev commented: “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 emphasise 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 through its growth and sustainability strategy, and I will do all I can to continue to support the company.”
Segev has a six-month notice period and will continue in his current position for that period or until another person is in place. The board, having periodically considered succession problems, has a mechanism well under way to find his replacement.
Barry Gibson, Entain’s chairman, explained: “We are sorry that Shay has decided to leave us but recognise that we cannot match the rewards that he has been promised.
“Entain has a wealth of talent across its leadership team and the business has never been stronger. The company has delivered 20 quarters of double-digit online growth, and our future prospects have been substantially enhanced by our new strategy, which we set out in November.
“We have built a truly global business which is entirely based on our own technology and offers our best-in-class entertainment services in more than 20 nationally-licensed countries.
“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.”