The gambling industry experienced a major shakeup this summer as 888 Holdings, a global online casino and sports book operator, rejected a £700 million (around $883 million) acquisition bid from Playtech PLC, a leading software development company in the iGaming industry.
Playtech offered to take over 888 Holdings’ operations for 156p (around $1.97) per share on the London Stock Exchange, valuing the overall corporate value of 888Holdings at around £300 million (approximately $379 million). However, 888 Holdings rejected the bid, leading to the removal of the company from the FTSE 250, a list of the 250 companies listed on the London Stock Exchange with the highest market capitalization. This move also resulted in an increased rating of 888 Holdings on the London Stock Exchange, with the company’s shares rising to 81p (around $1.02) per share.
Following the rejection, 888 Holdings has seen a surge in its share price, indicating positive investor sentiment and potential for the company to return to the FTSE 250 list. This rejection came after a previous takeover bid from DraftKings was halted due to an investigation by the UK Gambling Commission into a minor shareholder of 888 Holdings.
The rejection of the £700 million bid from Playtech may be attributed to 888 Holdings’ $800 million acquisition of Caesars Entertainment’s vertical outside of the US in 2022, which increased the company’s overall value. The resulting share price increase has positioned 888 Holdings to seek more acceptable ownership trading offers.
Overall, the rejection of the acquisition bid has had a positive impact on 888 Holdings, leading to increased share prices and the potential for more favorable acquisition deals in the future. This move marks a significant development in the ever-evolving landscape of the global gambling industry.