Entain surprises the market as CEO suddenly quits

shay segev - entain ceo

Entain, the global sports-betting and gaming group which owns Ladbrokes and Coral betting brands, has announced that its CEO , Shay Segev, is leaving the company to become Co-CEO of DAZN, a privately owned global sports streaming platform.

According to a statement published via the London Stock Exchange’s RNS news site, Segev is leaving for a bigger pay packet at DAZN.

Segev has only been in the role for six months and he has a notice period of six months, which means he will remain in his current role for that period or until a successor is in place, the firm said. 

Entain takeover bid

The announcement also comes as FTSE 100-listed Entain is in the midst of a takeover proposal by MGM Resorts International. A move the Board of Entain has already dismissed as being way below its true value.  

Entain said its Board, having considered succession issues on a regular basis, has a process well under way to find his successor.

“We are sorry that Shay has decided to leave us but recognise that we cannot match the rewards that he has been promised”, Barry Gibson, Chairman of Entain, said.

“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.”

Segev’s opportunity

Commenting on his departure, 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.”

Entain’s shares were down just 1.3% at £14.55 on the news.