Shay Segev to exit Entain after six months as CEO
Israeli technology expert departs to take up co-leadership role at sports streaming platform DAZN
Shay Segev is leaving Entain just six months after taking over from Kenny Alexander as CEO of the FTSE 100 gambling operator.
Segev, who has been with the business for the last five years, will depart Entain to become the co-CEO of privately-owned global sports streaming platform DAZN.
Entain confirmed Segev will serve a notice period of six months and will remain with the firm until a permanent successor is found. The operator said the process to recruit his successor is “well under way”.
Segev will work alongside new DAZN co-CEO James Rushton, who has served as the group’s acting CEO since June 2020.
Entain CEO Shay Segev
“We are sorry that Shay has decided to leave us but recognise that we cannot match the rewards that he has been promised,” said Entain chairman Barry Gibson.
“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,” Gibson added.
Entain is currently in the midst of fervent speculation surrounding its long-term future following an £8.09bn takeover bid from US joint venture partner MGM Resorts International.
MGM’s initial bid for the business was rebuffed, however the US casino heavyweight is expected to return with another offer following pressure from shareholders.
Segev said: “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,” he added.
Entain’s share price has trended down in early trading on the London Stock Exchange.
Peel Hunt analyst Ivor Jones commented: “In our view the departure makes it more likely that Entain will be acquired by MGM.
“MGM announced on Friday that one of its shareholders would provide financial support for a partial cash alternative which will, we believe, be the key to a successful offer.
“The share price may give ground today in disappointment at Mr Segev’s departure but we reiterate our Buy recommendation and 1,800p target price but prefer 888 which has more upside potential from M&A,” he added.