As Caesars Entertainment could sell William Hill’s non-US assets this year, according to analysts, 888 Holdings could be one of the possible buyers.
888 a possible buyer of William Hill’s international assets
This quarter, Caesars Entertainment could start the sale process of William Hill’s international assets, and it is possible to announce a buyer later in 2021. According to an analyst, 888 Holdings’ investors could profit from such a deal. Caesars would be selling William Hill’s 1,400 betting shops in the UK and Ireland, and its European and UK businesses. According to analysts, the company can get at least $2 billion from the asset sell-off.
Rumor has it that the Israel-based 888 Holdings could be among the several possible buyers of William Hill’s non-US assets. In a recent note, analyst James Wheatcroft wrote: “Investors should buy 888 shares ahead of any deal to acquire the William Hill assets, in our view.” In his opinion, a deal for William Hill’s international assets could help 888 “identify avenues for cost reductions and lead to a double-digit increase in earnings per share.”
888 Announced Its Interest in March, but It Has Competition
Last year, 888 CEO Itai Pazner confirmed the company’s interest in William Hill’s non-US assets. This March, in an interview with The Times, Pazner said that the gambling giant has a strong foothold in iGaming and online poker. However, its sports betting exposure is relatively small compared to others. William Hill’s sports wagering could see enhancement upon acquisition of its international assets.
888 could see a lot of competition before cementing a deal, though. Apollo Global Management is another company rumored to have an interest in William Hill’s international assets. The company attempted to acquire William Hill outright and has an interest in the company’s sports betting assets, including the non-US ones. Other possible bidders could be Betfred, Entain, Kindred and Betsson.
Wheatcroft said, “Another acquirer may pay more for the William Hill assets. Even so, we argue 888 is undervalued, with 20% upside to our share price target.” According to him, 888 doesn’t need to win William Hill’s bidding process to generate share price appreciation.
888 helps bring Sports Illustrated online products to the US
888 is looking to stay on the front pages as it potentially tries to work a deal for the William Hill assets. On Wednesday, Authentic Brands Group (ABG), parent company of Sports Illustrated (SI), and 888 signed an exclusive partnership deal to develop SI’s online sports wagering and iGaming products in the US and launch an SI sportsbook later in 2021.
ABG founder, Chairman, and CEO Jamie Salter said that the company is excited to partner up with 888, one of the leading companies in online wagering and gaming technology in the world. It will help SI develop innovative, technologically advanced products and deliver them to sports fans in the US. The Sportsbook will first launch in Colorado and spread across other states in the US in the months ahead.