Playtech Offered £700 Million For 888 Holdings

It has been revealed in a Times Newspaper article that gambling tech provider Playtech made a £700 million offer to acquire William Hill owner 888 Holdings. The written indicative approach by Playtech to acquire 888 Holdings at a price of 156p a share in July was, however, rejected as undervaluing the company. This has once again has put additional pressure on Lord Jonathan Mendelsohn, the Labour peer who chairs 888’s board, as he strives to address the plummeting share price.

Playtech, a FTSE 250 company, is Known for its “white label” gambling technology business, which is used by various brands to run their gaming websites, Playtech also operates its own leading Italian betting brand called Snai. One suggestion put forward by individuals familiar with Playtech’s thinking is to combine 888’s brands with Snai and subsequently separate Playtech’s business-to-business operation as a distinct company. This strategy could potentially lead to significant savings, with estimates of up to £170 million in possible integration synergies.

Despite the potential benefits, 888 Holdings rejected Playtech’s approach, citing an undervaluation of the company. This decision has had a significant impact on 888’s share price, which has fallen approximately 80% since Lord Mendelsohn’s appointment as chairman in March 2021. Notably, the appointment of Per Widerström, a gambling industry veteran, as the new chief executive in October failed to prevent 888 Holdings from being removed from the FTSE 250 index. The declining share price and removal from the index have raised concerns about the company’s performance and prospects.

Lord Jonathan Mendelsohn, the chairman of 888 Holdings, has a noteworthy background in business and politics. Previously serving as Labour’s business and international trade spokesman and a leading New Labour adviser during the 2000s, Mendelsohn’s role in the company has come under scrutiny due to the declining share price. Additionally, there have been claims of early-stage merger discussions between Lord Mendelsohn and Jason Robins, the founder of American gambling giant DraftKings. These discussions occurred before 888 Holdings acquired William Hill and highlight the potential strategic considerations within the industry.

The post Playtech Offered £700 Million For 888 Holdings appeared first on iGaming Post.

Playtech Offered £700 Million For 888 Holdings
Source: Trend Philippines News