Poll: Will 888 remain an acquisition target?
With the latest attempt to acquire 888 falling flat, this week's eGR poll asks whether the operator is a feasible M&A proposition
This morning’s surprise news that William Hill has called off talks with 888 over a potential acquisition raises several questions about the future of one of online gambling’s pioneers.
Last week eGaming Review presented some strategic obstacles in the way of the deal, but it’s believed the only stumbling block was the opposition from one major shareholder.
The question now becomes is it possible to do a deal with 888, which remains one of the most prized assets in online gambling, at any price?
The 200p offer price from William Hill suggests a multiple of around 15x 2015 EBITDA, which doesn’t seem to be lowballing 888 in the current market.
But reports in The Times suggested one key shareholder was holding out for a 300p per share offer, which would value 888 at around £1.06bn.
Whether there are other suitors willing to pay £1bn for 888 in the current market is less clear, and the pool of potential acquirers is likely very small.
But there is no denying the value of 888 as a business, with its own technology platform, huge experience in gaming and well diversified portfolio.
It has the second largest poker network, running on its own software, owns the platform used by many of the leading bingo operators as well as its own in-house casino technology and has a superb acquisition and CRM platform.
So will another suitor come in for 888 or will William Hill come back with an increased offer? Let us know your thoughts on the right hand side of the page.