888 Holdings shares surged today after the online gambling company announced that it had agreed a reduction in the purchase price of William Hill’s international business.
Following the announcement, shares in 888 surged by 24% to 237.8p
The company had agreed to purchase William Hill from owner Caesars Entertainment in a £2.3 billion deal that would see 888 acquire William Hill’s non-US business. The newly agreed price is now expected to be somewhere in the region of £1.95 billion ($2.55/€2.33 billion) to £2.05 billion ($2.68/€2.45 billion).
According to the press release:
The amendments to the Sale and Purchase Agreement reflect the change in the macroeconomic and regulatory environment since the announcement of the Acquisition, as well as compliance factors impacting the WH business, including actions taken as part of an ongoing review by the Gambling Commission of Great Britain (“UKGC”).
The UKGC is currently reviewing the license issued to William Hill following the receipt of incorrect data from the company. This has led to Caesars taking the step to indemnify 888 up to £150 million ($196.2/€179.8 million) based on any outcome of the review.
The original deal would have seen 888 pay £835 million ($1.009/€1 billion) as an initial cash consideration, but this has been dropped by £250 million ($327/€299 million) to £585 million ($765/€701 million). Following the announcement, shares in 888 surged by 24% to 237.8p in London on Thursday morning.
Caesars Entertainment purchased William Hill in 2021 in a deal worth just over £3 billion ($3.92/€3.6 billion) in a bid to strengthen its presence in the market following the legalization of sports betting in the USA. Since then, the company has rebranded all William Hill US retail and mobile sportsbooks to Caesars Sportsbook which is now available in 14 states.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.