Caesars Entertainment is in talks to buy William Hill in a deal that would value the British bookmaker at £2.9 billion and underscore the size of the opportunity in online gaming and sports betting in the United States.
In a joint statement on Monday, the companies said that the casino operator could offer £2.72 per William Hill share, an 81% premium to the stock's average price over the three months to September 24. The deal would give Caesars control of their US joint venture. William Hill says it has a 32% share of revenue in the Nevada sports betting market, and it is rapidly expanding into other states.
William Hill’s board of directors have informed Caesars that its offer “is at a price level that they would be minded to recommend” to shareholders.
Caesars revealed the due diligence has been completed and that a deal could be completed by the second half of 2021 – subject to approval by shareholders and regulators.
Caesars chief executive Tom Reeg said: “The opportunity to combine our land-based casinos, sports betting and online gaming in the US is a truly exciting prospect. William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast growing US sports betting and online market.”
“We look forward to working with William Hill to support future growth in the US by providing our customers with a superior and comprehensive experience across all areas of gaming, sports betting, and entertainment,” Reeg added.
Shares in London-listed William Hill surged 41% on Friday to £3.10 ($3.94) per share, after the company said it had received offers from both Caesars and private equity firm, Apollo, suggesting that a bidding war could emerge.
But the stock pulled back on Monday, tumbling 11% after William Hill said it was "minded" to recommend the Caesars offer to shareholders. Caesars said it would be entitled to terminate the US joint venture agreement if Apollo bought the company.
Source: GMB
