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Playtech Offer to Acquire 888 Rebuffed

Playtech Offer to Acquire 888 Rebuffed

A Sunday Times report has revealed Playtech had significant interest in the acquisition of William Hill’s parent company and global operator, 888, but was turned down by the company.

According to the report, 888 Holdings rejected a £700 million bid from software provider Playtech in the summer.

Playtech offered 156p (approximately $1.97) per share on the London Stock Exchange. The company has an estimated overall value of approximately £300 million. The slump resulted in 888 Holdings being removed from the FTSE 250 last month after the stock fell to 70p.

The stock, however, has rebounded since news of the attempted takeover. Shares of 888 Holdings have actually increased, currently standing at around 81p (approximately $1.02) per share.

This isn’t the only takeover bid 888 Holdings has been subject to, with reports that DraftKings also tried to acquire the company earlier this year.

Playtech’s interest in acquiring 888 and William Hill’s parent company initially surfaced in July when it submitted a written approach for the U.K. betting giant. However, their offer was considered undervalued by the company. Nevertheless, recent developments have reignited the potential for a deal.

In October, 888 launched a strategic review led by their new CEO, Per Widerström. This review aims to comprehensively assess the company’s online performance. The review comes after 888’s acquisition of William Hill, a deal originally valued at around £2 billion. However, 888 has faced challenges, including the underperformance of their joint venture with Sports Illustrated in the U.S. As a result, the company is exploring ways to enhance its overall online presence.

Playtech sees potential in leveraging the value of William Hill through integration with their SNAI Italia business. This move could have a significant impact on the European betting and gaming landscape. As one of the key players in both the retail and digital sectors, William Hill’s integration with Playtech could reshape the industry.

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