Playtech Eyed a £700M Acquisition of William Hill

British gambling company William Hill has rejected a takeover attempt from Playtech, according to a report by The Sunday Times. The news outlet claimed that the latter company offered £700 million (approximately $887 million) for the acquisition.

According to unspecified sources, Playtech tried to acquire William Hill in July. The former company may have sought to combine the British operator with its Italy-facing subsidiary, Snai.

William Hill was acquired by 888 Holdings in 2022 in a monumental move for the latter company. The group was likely unwilling to divest its newly acquired asset so soon, although it might have been wise to do so, considering the British operator’s current valuation.

For reference, William Hill’s market capitalization is currently more than two times lower than the sum allegedly offered by Playtech. William Hill’s declining capitalization comes amid troubled times for its current parent company, which continues to be set back by suboptimal financial results.

Despite its favorable partnership with Playtech, 888 must have been reluctant to part ways with William Hill, considering its current strategy. While the gambling giant continues to be troubled by financial problems, its leadership is convinced that it will be able to rebound and that its investments will pay off.

888 Remains a Tempting Target

In the meantime, 888 was itself the target of an acquisition attempt. According to a recent report, DraftKings was interested in acquiring the group in an all-stock acquisition deal. This was in line with other reports which claimed that 888 is a tempting target for larger casino groups.

As per the report, Jason Robins, DraftKings’ chief executive officer, met with representatives of FS Gaming, a major 888 shareholder, and discussed the possibility of an all-stock takeover. DraftKings may have sought to acquire 888 for roughly $676.9 million, based on the group’s market capitalization at the time.

While 888’s precarious position makes it a tempting acquisition target, the company seems to be bullish on recovering and surpassing expectations. Luckily, it doesn’t have debt maturities until 2027, providing it with ample time to enact its strategy. However, that doesn’t mean that companies will stop expressing interest in 888 and its subsidiary William Hill.

In October, 888 welcomed the experienced Per Widerström as its new chief executive officer. Widerström, who called 888 an “iconic company,” boasts almost two decades of corporate experience in the casino industry and is intent on helping the group succeed.