Too small of an offer
Playtech reportedly tried to purchase 888 Holdings during the summer for ￡700m ($887m). The Sunday Times reported that the gambling technology company made a written approach to buy the owner of William Hill in July for about ￡1.56 ($1.98) per share. The outlet’s sources revealed that some people at Playtech felt the firm could save about ￡170m ($215m) in synergies by combining the two businesses.
share price jumped 19% Monday morning on the back of the attempted takeover news
888 turned down the offer after deeming it to be insufficient and its stock price has dropped significantly since then. It fell out of the FTSE 250 last week, an index that is made up of the 101st to 350th largest companies on the London Stock Exchange. 888 currently has a market capitalization of about $376m ($476m); its share price jumped 19% Monday morning on the back of the attempted takeover news.
A turbulent period
888 has had a difficult 2023 so far, with regulatory issues, poor financial results, takeover talks, and changes in key management roles all causing disruption.
involved in an alleged bribery scandal in Turkey
The FS Gaming group, which controls about 5% of 888, has been at the center of some recent struggles. A few of its members were involved in a historic bribery scandal in Turkey which has led to gambling group Entain having to pay a ￡585m ($741m) settlement.
Some of these investors had been proposed to become part of 888’s management team before the concerns became more prominent. The UK Gambling Commission placed the operator’s betting license under review due to its links with these individuals.
A major target
This is not the only takeover approach 888 has gotten recently. It was revealed last month that US sportsbook giant DraftKings also considered an acquisition during the summer. The operator ultimately pulled out of negotiations over concerns about the license review.
The company has made some of its own significant acquisitions in recent times, most notably buying the non-US assets of William Hill last year for almost ￡2bn ($2.5bn). Most of this transaction was financed by debt.