The Sunday Times reported that Playtech made a bid over the summer worth around £700 million ($887 million) to take over 888 Holdings. [Image: Shutterstock.com]
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Playtech reportedly tried to buy 888 Holdings over the summer for £700 million ($887 million). Sunday times It was reported that the gambling technology company took a written approach to buy out owner William Hill in July for about £1.56 ($1.98) per share. The outlet’s sources revealed that some people at Playtech felt the company could save around £170 million ($215 million) by combining the two companies.
The stock price jumped 19% Monday morning on news of the takeover attempt
888 rejected the offer after it deemed it insufficient and its share price has declined significantly since then. It dropped out of the FTSE 250 last week, the index that consists of the 101st to 350th largest companies on the London Stock Exchange. The market value of 888 currently stands at approximately $376 million ($476 million); Its stock price jumped 19% on Monday morning on the back of news of the takeover attempt.
Turbulent period
888 has had a difficult 2023 so far, with regulatory issues, weak financial results, takeover talks and changes in key management roles causing turmoil.
Involved in an alleged bribery scandal in Türkiye
FS Gaming Group, which controls about 5% of 888 companies, has been at the center of some recent conflicts. A few of its members have been implicated in a historic bribery scandal in Turkey, which resulted in gambling group Entain having to pay a £585 million ($741 million) settlement.
It has been suggested that some of these investors could become part of the 888 management team before concerns become more prominent. The UK Gambling Commission has placed the operator’s betting license under review due to its links to these individuals.
Main goal
This isn’t the only acquisition approach 888 has taken recently. It was revealed last month that US esports giant DraftKings was also considering a takeover over the summer. The operator eventually withdrew from negotiations over concerns about the license review.
Playtech is one of the world’s leading developers of online casino games and also owns Senai, a major sports betting brand in Italy.
The company has made some significant acquisitions of its own recently, most notably purchasing the non-US assets of William Hill last year for nearly £2 billion ($2.5 billion). Most of this deal was financed by debt.
