William Hill, one of the world's biggest online and land-based bookmakers, poker rooms and casino sites, is considering taking over 888, which is one of the leading sites in the industry as well. 888 Holdings Plc confirmed that they have been contacted by William Hill about a possible takeover, which boosted the stocks of 888 with 18%.
This doesn't mean that William Hill will take over 888 nor that they will even make an offer, but the initial process in doing so is there. The company also confirmed this in a press release to the London Stock Exchange on Tuesday, where no financial details were disclosed.
According to rumours circulating in the industry, a potential deal would be worth around $1.1 billion if William Hill would want to take over 888. It will be interesting to see if 888 is willing to sell at that price or if they will try and get more out of the deal as one might expect them to do.
888 is currently valued at around $930 million, including all their subsidiaries and the investors would look to make a 15% profit on their shares if they sell at a $1.1 billion offer. William Hill is currently working alongside Citigroup to evaluate if they should make an official offer and 888 is seeking guidance from Investec Bank and Morgan Stanley.