Shares of DraftKings (DKNG) are under pressure on Tuesday after CNBC's David Faber reported that the company has made a $20B offer to acquire U.K. online sports betting company Entain (GMVHF). According to people familiar with the matter, the offer is largely in DraftKings stock, along with cash. Entain has confirmed it received a stock and cash proposal from DraftKings without disclosing any other details.

DRAFTKINGS BID FOR ENTAIN: DraftKings has made a $20B cash and stock offer to acquire Entain, CNBC's David Faber reported, citing people familiar with the matter. DraftKings made the "serious" offer for Entain a few days ago, the sources said, adding that the offer is largely in DraftKings stock, along with cash.

DraftKings went public via merger with a special purpose acquisition company last year.

Entain has since acknowledged the recent media speculation and has confirmed "that it has received a proposal from DraftKings to acquire Entain, the consideration for which would include a combination of DraftKings stock and cash. There can be no certainty that any offer will be made for the company, nor as to the terms on which any such offer may be made," Entain said in a statement issued to the London Stock Exchange.

MGM BID FOR ENTAIN: On January 4, MGM Resorts International offered 0.6 MGMRI shares for Entain, worth about $11B at the time. Entain rejected the offer on January 12. Under the terms of the proposal, Entain shareholders would own approximately 41.5% of the enlarged MGM. MGM had indicated that a limited partial cash alternative would also be made available to Entain shareholders. Entain later informed MGM that it believed the proposal "significantly [undervalued] the company and its prospects."

MGM (MGM) and Entain had entered into a joint venture in 2018 called BetMGM, which they both still maintain. BetMGM is the exclusive sports betting division of MGM. Other U.K. listed sports betting companies include Flutter Entertainment (PDYPY) and 888 Holdings (EIHDF).

PRICE ACTION: In Tuesday morning trading, shares of DraftKings have dropped over 6.5% to $53.24.