Shares of 888 Holdings Jump Over 18% On Merger TalkPublished on February 10th, 2015 8:15 pm EST
Shares of 888 Holdings jumped over 18% today to close at 171.50 (London Stock Exchange) after reports surfaced claiming that William Hill was looking to make an offer for the company.
According to multiple media reports, William Hill has proposed a £700 million deal that would likely involve a combination of cash and shares. Despite the 18% jump in shares of 888 Holdings today, the company still has a value of £600 million, meaning that many traders are somewhat skeptical as to whether this deal will actually go through.
William Hill, which was established in 1934, is one of the largest online gaming companies in the world. The multi-billion dollar company, which has a significant online presence in addition to betting shops in the United Kingdom, traded down over 3% after news of the possible bid was revealed.
According to the Financial Times, William Hill may be interested in this deal in order to offset some of the hit in profits and growth that came as a result of the introduction of the United Kingdom's new point-of-consumption tax. In addition, 888 is seen as being strong when it comes to their online poker and online casino offerings, while William Hill is a goliath in the world of sports betting. The combined entity, it is assumed, would be a powerhouse in the online gaming space.
Industry observers point out that 888 Holdings has been a rumored acquisition target in the past but nothing has ever transpired. Will a deal actually go through this time?
Source: FT.com - William Hill Bets on 888 With £700m offer
Filed Under: Other Poker News