William Hill is not only one of the world’s leading gaming and betting companies but it’s the largest and most influential one in the UK. Their online casinos also pave the way in iGaming. They are a true success but could that all tumble down in the blink of an eye?
Surely when you’re at the top of the table in your industry and on the rise one shouldn’t have to worry about tables turning. Except if your strongest competitors, say Number 2 and Number 3, come together in a merger and, thus, threaten to overtake you.
Well, that might sound like the worst case scenario for William Hill but that’s exactly what might happened very soon if Ladbrokes and Gala Coral get a clearance to proceed with their plans of joining forces. The merger is expected to be finalised in September.
Mergers in the gaming and betting area are a hot topic after the 2015 merger between Paddy Power and Betfair. Less than a year later, experts weighed in the pros and cons and calculated the profit. The Paddy Power Betway company, sometimes called by the pet name Betty Power, has reported a £11m profit boost.
While the gaming world is waiting to see what will happen to the leading bookmakers, William Hill have already received an offer that might be the answer to their prayers. At least, that’s what 888 Holdings and Rank Group claim.
The ever-growing and conquering new grounds 888 Holdings, which was established in 1997, already experienced their shares sky rocket after the news came that William Hill was interested in acquiring them for £750m. That was in January, 2015, but the deal fell through.
The Rank Group, founded in 1995, started as a company interested in cinema and motion pictures. However, they also own the Grosvenor Casino chain including 56 brick and mortar casinos, which makes them the largest casino operator in the UK.
Though some proposed the need for the 888 Holdings and the Rank Group to merge before making an official offer to William Hill, that hasn’t happened so far. They did, however, make an offer, which William Hill rejected. That resulted in a slightly better offer the very next day, which, once again, was rejected.
Rank Group, similarly to William Hill, have experienced a drop in their shares on the stock market in the past twelve months. Though the drop was not nearly so drastic as that of William Hill’s, Rank would definitely benefit from a three-way merger. Actually, 888 Holdings are the only one from the three whose shares have gone up in the previous year.
The merger might turn out to be the best thing for William Hill. Assuming they are now playing their cards well as they seem uninterested in a proposal that ‘continues to substantially undervalue the company’ while waiting for a better deal. We’re yet to find out as the William Hill merger saga continues.