Sports betting and gambling firm Entain (ENT) has seen its shares halve over the last year and recently plumb new 12-month lows just as the FTSE 100 is hitting new highs.

This poor showing reflects a combination of factors including weak operational performance, regulatory headwinds and a lack of leadership, with the company looking for its fourth chief executive in as many years.

The group’s troubles have attracted activist investors including Eminence Capital which gained a board seat in January. This prompted a strategic review of the group’s structure, which led to rumours of private equity interest in a potential break-up of the group.

Last month, The Times suggested one suitor could be CVC Capital, which formerly owned Sky Bet and is the majority owner of German bookmaker Tipico.

Another factor stirring up speculation is the announcement last month that chairman Barry Gibson intends to step down in September.

Gibson blocked bids for Entain from two US firms, MGM Resorts International (MGM:NYSE) and fantasy sports betting company Draftkings (DKNG:NASDAQ), at £13.83 and £28 respectively in 2021, both a far cry from today’s share price.

Current interim chief executive Stella David will replace Gibson once a permanent CEO is appointed to replace Jette Nygaard-Anderson, who abruptly resigned last December.

The resignation followed Entain’s £585.5 million settlement of a Crown Prosecution Case relating to historic activities in Turkey undertaken by prior management. 

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