Previous Head of Rank Group, Henry Birch, Nuanced for Entain Position
Gambling behemoth Entain is thinking about bringing in the former CEO of Britain's biggest land-based casino organization as a possible successor to previous leader Jette Nygaard-Andersen, who called it quits at the end of last year.
Henry Birch used to call the shots at the Rank Group, which operates the Grosvenor Casino chain, as well as the Mecca Bingo brand. Following his departure from Rank, he moved on to head the online shopping site The Very Group, but stepped down there in 2022 as well.
Birch is one of several high-profile contenders to take on the role, sources informed Sky News. Since Nygaard-Andersen's exit, Entain has been under the temporary leadership of Rob Wood.
Steady Hand Needed
The position requires a steady hand after a few rough years for the company, which owns Ladbrokes, half of BetMGM, and lots of other international gambling brands. A new CEO might have to steer Entain through a partial or complete takeover.
Aggressive investors, such as Eminence Capital's Ricky Sandler, have built a considerable presence in the firm and have voiced their displeasure with recent performances.
Last March, Entain announced its intention to divest various of its foreign assets to focus on its core business. The implication is that activists believe a pared-down Entain would be more enticing to potential buyers or breakup artists.
Private equity juggernauts Apollo Global Management and CVC Capital have reportedly been mosying around and could consider scooping up some of Entain's more significant brands in case of a thorough asset sale, as per The Times of London.
Stock Disappointment
In 2021, Entain received takeover offers from DraftKings and MGM, its joint venture partner in BetMGM. Both offers pegged the company at a much higher value than its current market cap.
Entain's stock has dropped by 50% in the past year, bringing its market cap to a small fraction under £5 billion ($6.2 billion). Some activists lay the blame on a string of inferior acquisitions for the downturn. Under Nygaard-Andersen's rule, Entain forked out around $2 billion on mostly underwhelming regional-market brands, and her departure occurred amid whispers of "inner turmoil."
Aside from Birch, Dan Taylor, boss of Flutter Entertainment's international operations, has also been shortlisted for the role, according to Sky News' insiders. It's unclear when a formal announcement on the pick could come, with whispers of weeks or even months passing before that happens.
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Source: www.casino.org
