888casino in Talks to Purchase William Hill’s European Assets
It’s no secret William Hill is desperate to sell a major percentage of their company; 888casino has swooped in with an offer to buy their European assets. Several important meetings took place in July and August; this enables 888casino to gain an understanding of the deals’ true value and meet the needs of their clients. This deal would hand over millions of dollars worth of property from William Hill to 888, including a large number of UK branches as well as German and Italian shops.
William Hill is willing to sell a company majority to 888casino, the current frontrunner in the ongoing bidding war for one of Europe’s most well-known betting brands. Despite their urgency to sell, William Hill is determined to find the right buyer and has held extensive talks with 888 representatives over a future deal. ©Free_Photos/Pixabay
Since last year, the UK-based bookmaker has been open to a merger or direct acquisition with another buyer. Their parent Caesars Entertainment is the fourth-largest gambling company in the world; with hundreds of brands under their umbrella, their annual revenue for 2020 reached $9 billion. Founded in Nevada, several of the largest Las Vegas Strip casinos are under their control. A majority of their consumer base is American, but they also have significant interests in numerous European businesses.
Caesars Entertainment sent representatives from Vegas to London in order to properly discuss finances and any potential future moves. 888casino still retains their interest despite William Hill’s faltering success over the last few years. Europe has seen a massive increase in online sportsbooks. The biggest players, including Bet365, Betway, Paddy Power, and many others, have cemented their market position, making it difficult for William Hill to scale the business and return to their former glory.
888casino believes that buying William Hill will give them access to a whole new user base and a much greater continental presence. While the 888 brand is already highly successful, they have acquired numerous technology start-ups over the past year, increasing their R&D funding to develop a better product/service. Caesars Entertainment acquired William Hill’s American sub-section of land-based business to expand their foothold in the once blossoming American online gambling market. Tipico enquired about the acquisition of William Hill’s European assets; however, these negotiations soon broke down due to a clear gap in valuation between parties.
888casino entered the picture shortly after Tipico decided to withdraw from the deal in progress officially. Since then, all consecutive talks have warranted positive results, and an official announcement concerning the deal between 888 and William Hill is expected within a month. CVC Capital Partners also expressed interest but eventually pulled out due to other business interests taking priority over the acquisition of William Hill. Apollo Global Management rivaled CVC last year in the bidding race, but William Hill was forced to step up their company salesmanship once both companies pulled out.
William Hill Cling on for Dear Life
While William Hill hopes to sell the company profitably, their valuation seems to greatly overshadow their clients. 888casino value all of William Hill’s assets at around $2.7 billion. The British bookmaker insists on a slightly higher sum; eventually, a compromise will have to be made for the deal to progress. Their favor towards 888 is simply due to the fact that they valued the company higher than any previous suitor. They’re an immediately attractive buyer, and William Hill was quick to pounce on the opportunity to negotiate.
William Hill had a rough 2020; the pandemic, as well as a poor 2019, meant the closure of over 600 shops across Europe. The disappointment in their user base was apparent, and many switched to other online platforms for a more reliable user experience. This acquisition may be the last chance for the brand to survive past its sell-by date. While they maintain their traditions and prioritize land-based establishments rather than online casinos, the technology-driven industry will leave them behind if they fail to adapt.
