The Financial Times reported that DraftKings was examining a potential acquisition of 888 Holdings over the summer. [Image: Shutterstock.com]
Didn’t cross the line
The online gambling sector is always changing and changing, with mergers and acquisitions constantly making headlines. the Financial Times (FT) revealed on Thursday that US giant DraftKings is considering the possibility of acquiring 888 during the summer.
An investor group controls approximately 6.6% of the 888 holding shares
Early talks about an all-stock offering were reportedly held in June and July between DraftKings CEO Jason Robbins and FS Gaming Investments, an investor group that controls about 6.6% of 888 shares of Holdings stock and has been pushing for internal changes.
Some members of FS Gaming include former GVC Holdings (now known as Entain) president Lee Feldman and former GVC CEO Kenneth Alexander. The move ultimately did not come to fruition after DraftKings learned that the UK Gambling Commission (UKGC) was investigating the consortium’s investment in 888 over some historical issues related to GVC in Brazil and Turkey.
Interesting suggestion
foot I spoke to an unnamed source He is a top ten 888 shareholder who said he would have listened to what DraftKings had to say, noting that “888 can help fill DraftKings with technology and knowledge, and in the long run, DraftKings wants to take over the world.”
The operator is not believed to be currently for sale
Robbins mentioned last week in an interview that the company had been keeping a close eye on 888 over the years before saying he didn’t believe the operator was currently for sale.
DraftKings has taken steps in the past to try to acquire primarily foreign-focused competitors, though it is currently targeting the North American market. Its £18.4 billion ($22.5 million) offer in 2021 for Entain received little attention from the UK gambling group’s board.
A difficult year for 888
888 has been through a lot of turmoil over the past year or so. Its former CEO, Itay Panzer, resigned in January as a result of an investigation into its VIP operations in the Middle East. The company’s president searched for someone to take over for about six months before settling on Per Widerström.
It was not before FS Gaming proposed three of its members for senior positions in the company, with UKGC investigations into some of them eventually bringing the discussions to an end.
888 acquired William Hill’s non-U.S. assets last year in a deal worth about £2 billion ($2.5 million), most of which was financed by debt.
The UKGC also imposed a record fine on 888 of £19.2 million ($23.5 million) in March in relation to anti-money laundering and social responsibility failures at William Hill. Shares of 888 stocks fell on the back of this bad news.
