An online gambling and gaming company, 888, has disclosed that they are in serious discussions with Caesars Entertainment regarding the potential purchase of William Hill’s international holdings. Reports from the media suggest that 888 has outbid Apollo Global Management and CVC Capital Partners for the opportunity to acquire these assets. 888 has confirmed that they are in advanced negotiations with Caesars for a possible acquisition of these assets, but the agreement is not yet finalized. The company has added that the talks may not lead to a deal.
Caesars acquired William Hill in April for a sum of £2.9 billion (€3.37 billion/$4 billion) and stated that the primary objective of the deal was William Hill’s American betting operations and technology, with the remaining assets intended for sale.
Caesars triumphed over a rival bid from Apollo Global, as well as a legal challenge from investment management fund HBK Investments, which caused a delay in the deal’s scheduled April 1 closing.
Caesars Entertainment revealed in the springtime that it would begin selling its non-American holdings of William Hill in the summer months, aiming to find a purchaser and finalize the deal within a year.
While Caesars Entertainment has not revealed the identities of any parties in discussions, reports indicate that Apollo Global Management and CVC Capital Partners were both interested in acquiring the holdings, but the latter is thought to have recently withdrawn from the process.
Tom Reeg, the head of Caesars Entertainment, indicated at the time that Caesar’s would initiate the selling process by the end of the second quarter, June 30. He stated that the operator hoped to announce a buyer by the end of the third quarter or early in the fourth quarter, and complete the transaction in May 2022.
Reeg did not disclose the anticipated selling price of the holdings, but Brett Yank, Chief Financial Officer, mentioned that Caesars Entertainment planned to repay $2 billion in debt over the next 12 months, and the sale would aid in achieving this objective. He added that the $2 billion target assumed a conservative selling price for William Hill’s non-American operations.
“One of the things I disliked most when I was an investor was companies that didn’t know what they were proficient at, and I can’t tell you we’re proficient at operating non-American digital businesses,” Reeg stated.
“I can tell you that there are almost certainly some individuals who are better at it than us and see the opportunity. I can invest that money into businesses that I know will generate a higher return for shareholders.”
Weve never ceased searching for purchasers for our non-American operations.”
In the past week, 888 revealed that their income and earnings for the initial six months of their fiscal year were on the rise compared to the corresponding period in the previous year. This growth was propelled by their ongoing expansion into regulated markets across the globe.
Income for the six-month period concluding on June 30th reached $528.4 million, a 39.4% surge from the $379.1 million they generated during the same period in the preceding year. Their profit also witnessed a substantial increase, climbing 11.4% to $50.7 million compared to the same timeframe last year.
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