William Hill, the owner of 888 Holdings, rejected a proposal for acquisition put forth by Playtech. The organization was presenting an $890 offer to merge it with Snai, its Italian wagering division. The Sunday Times reports preliminary discussions between the two organizations commenced in July.
Somewhere in the middle of 2023, DraftKings approached William Hill with a proposal to acquire 888 Holdings. The understanding was that DraftKings was looking at an all-stock buyout of 888.
Reportedly, DraftKings and 888 stopped negotiations not long after FS Gaming Investments—an investment entity started by former GVC CEO Kenny Alexander—announced that it had acquired a 6.57% stake in 888. The Great Britain Gaming Commission (GBGC) informed DraftKings that they were considering Willian Hill’s certification. This occurred because, when Alexander was in charge, GVC engaged in questionable dealings with a corporation based in Turkey.
With the current currency rate between the British pound and the US dollar, Playtech valued the aim at $889.65 million in their bid for 888. Some market experts, knowing about the deal, believed that it would have been better for 888 to have given its consent to the deal. This is if one considers the company’s market capitalization to have gone down to $381.28 million. It was following the operator dishing out $765 million to Caesars Entertainment in 2022 by way of Hill’s global businesses.
888 has been collaborating with Playtech for some time. According to the latest casino news, Playtech was in charge of overseeing the operations of internet casino games on 888’s platform. Both parties expanded their presence in the US iGaming market in 2022.
According to the US Division President of 888, Howard Mittman, through the understanding, more exciting games will be made accessible for the players. They are glad to have formed a mutually beneficial association with Playtech.
Although it is a known fact that there are various bidders for 888 in the market, presently, the management feels it is not the right time to sell out, instead remaining independent and operating on its own.
The end of 2022 witnessed the gaming entity having a high debt-to-capital ratio, along with $3.55 billion in the form of outstanding liabilities. However, there are no debt maturities until 2027. This helps give the company some breathing space. Where Hill’s positive image is concerned, a lot of the bidders will remain interested in the idea of an acquisition.