Update: Ladbrokes Takes over 888


The deal confirmed

During the weekend, the online gambling industry news were filled with reports and speculations about the potential acquisition of online gambling software developer 888, by an industry giant Ladbrokes for GBP240 million. This time, the deal is confirmed; at 70p a share, it represents a premium of some 40 percent.

When the news about the negotiations between the two companies appeared, the price of 888's shares went up 24 percent, putting the company’s investors in a rather beneficial position, as prior to this they only saw their shares lose around two-thirds in value since January 2010.

Previously, four years ago, Ladbrokes made another attempt to acquire 888.com, but didn’t go through with it due to doubt that 888.com may prove vulnerable to US legal problems connected with its pre-UIGEA presence in the States. However, 888 hasn’t followed its competitors Party Gaming and Sportingbet, which have negotiated a settlement with US authorities.

The industry believes that this may be the first big deal for the new CEO at the Ladbrokes helm, Richard Glynn.

According to Collins Stewart analyst Simon Davies: "We believe a 70-pence offer should be a slam dunk for investors, but see significant regulatory risk to a successful transaction given that 888 has not procured a non-prosecution agreement with the US Department of Justice, which represents a potential poison pill."

It was assessed by Morgan Stanley analysts that this deal could prove to be a whole strategic and financial winner, as it will pair up Ladbrokes' strong sports betting book with 888's internet casino offering , and make an online gambling business whose estimated annual revenue is GBP350 million and earnings GBP85 million. In addition, the analysts stated that potential yearly savings for the companies could be as high aa GBP25 million in technology, marketing and overhead costs.

General Gambling News Gambling Law & Society News

Login to post a comment:


 
 

Click Here to register a new account

What's going on right now!

5mins ago someone from United States read article New Jersey Senators Urge Governor to Ink Online Gambling Law

Casino Community

Share this page on:
Follow LCB on:
Follow LCB

Casino Of The Month

Casino of the Month

In the last 24h

Totals

  • New Members
    31
  • Members Online
    443
  • Guests
    2,294
Highest Community Rated Online Casinos
NextCasino
  (123 Ratings)
Bet365 Games
  (146 Ratings)
CasinoLuck
  (193 Ratings)
Betsson Casino
  (189 Ratings)
Unibet Casino
  (110 Ratings)
Slotty Vegas
  (85 Ratings)
Guts Casino
  (143 Ratings)
Redbet Casino
  (117 Ratings)
Spin Palace Casino
  (100 Ratings)
Betsafe Casino
  (165 Ratings)
Mr Green Casino
  (253 Ratings)
BitCasino.io
  (148 Ratings)
32 Red Casino
  (267 Ratings)
ComeOn Casino
  (204 Ratings)
Winner Casino
  (314 Ratings)
Liberty Slots Casino
  (142 Ratings)
Intertops Casino Classic
  (94 Ratings)
Thrills Casino
  (108 Ratings)
Vera John Casino
  (156 Ratings)
Intertops Red Casino
  (104 Ratings)
Jetbull Casino
  (88 Ratings)
Casumo
  (109 Ratings)
Sin City Casino
  (76 Ratings)
PlayHippo
  (62 Ratings)
BETAT Casino
  (171 Ratings)
Ladbrokes Casino
  (134 Ratings)
Slotland
  (262 Ratings)
Whitebet Casino
  (76 Ratings)
Llama Casino
  (16 Ratings)
3Dice Casino
  (225 Ratings)


Follow LCB on Facebook Follow LCB on Twitter Follow LCB on Pinterest Follow LCB on Google plus