William Hill Online Gambling Playtech Joint Venture Buyout Pending

Published Friday, November 09, 2012 - Online-Casinos.com

Since 1999 Playtech has been advancing the cause of internet wagering at a steady pace creating software that out plays many others. It has become the world’s biggest publicly traded software supplier for the online gambling industry. The firm recently revealed it had another stellar quarter that saw its gross income gain 32% capping out at €92.7 million with total revenues gaining 30 percent to €79.9 million. The news that many want to hear is how well its stake in William Hill Online is doing. It increased in profit by 50 percent to €12.8m throwing cold water on a possible buyout by William Hill of the Playtech portion of their joint venture.

Chief Executive Officer for Playtech, Mor Weizer, commented on the results, “The positive trend seen in the third quarter has continued into the fourth quarter. Given the expected contribution of new licensees launched, further expected legislation in regulated markets such as Italian slots, the introduction of new products including sports and mobile applications and the advanced discussions the company has held with various significant licensees, we remain very confident and excited regarding the future prospects for the business for this year and beyond.” Relations between the two firms have not been all that stable and William Hill’s declaration that they want to exercise the option to purchase the joint venture is now in limbo.

Playtech owns 29 percent of William Hill Online which has been reported to be valued at somewhere between £230m to £500m. Controversial part owner Teddy Sagi who founded the Playtech empire will want the best price possible. The recent results have given the company a boost for demanding the inflated value of the stake, something that William Hill Online will have to deal with soon. Back in October of 2012 Chief Executive Officer of William Hill, Ralph Topping said, "We are also announcing today that we intend to commence the valuation process relating to the minority share in William Hill Online prior to making a decision on this by the end of the first quarter of 2013,"

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