888Holdings Refuses Playtech’s Acquisition Offer

In the summer of 2023, 888 Holdings, a global online casino and sports book operator, received a bid from Playtech PLC, a software development company in the iGaming industry, to acquire the company for £700 million (approximately $883 million). However, 888 Holdings rejected the bid, leading to an increase in the company’s share price.

The bid from Playtech was for the ownership transformation of 888 Holdings, with an offer of 156p (around $1.97) per share on the London Stock Exchange. This offer valued 888 Holdings at around £300 million (approximately $379 million). As a result of this bid, 888 Holdings was removed from the FTSE 250, a stock index of the 250 companies with the highest market capitalization listed on the London Stock Exchange.

The rejection of the bid led to an increase in 888 Holdings’ rating on the London Stock Exchange, with the company’s shares rising to 81p (around $1.02) per share. This rejection also had an impact on the company’s potential return to the FTSE 250, as the increased share price reflected the effects of the rejection.

It was also reported that the rejection of Playtech’s bid may have been influenced by 888 Holdings’ recent $800 million acquisition of Caesars Entertainment’s vertical outside the US in 2022, which increased the company’s overall value. This increase in shareholder price would enable 888 Holdings to seek more acceptable ownership trading offers.

The rejection of Playtech’s bid came after a previous takeover bid from DraftKings was halted earlier in the year due to an investigation by the UK Gambling Commission into a minor shareholder of 888 Holdings. Despite these developments, 888 Holdings continues to maintain a strong presence in key markets across the US.

Overall, the rejection of the $883 million bid from Playtech has impacted 888 Holdings’ share price and may lead to the company seeking more favorable acquisition deals in the future.