Playtech has made a £700 million deal for 888 Holdings.

Playtech has initiated a £700m bid to acquire 888 Holdings, owner of William Hill. The proposal at 156p per share was rejected by 888 Holdings, citing undervaluation. This adds to challenges for 888's chairman, Lord Jonathan Mendelsohn, dealing with a significant share price decline.

Despite appointing a new CEO, 888 Holdings was recently removed from the FTSE 250 index. Playtech might integrate 888's brands with Snai, potentially saving £170m.

Reports also suggest early-stage merger discussions between Lord Mendelsohn and DraftKings founder Jason Robins.

 

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The news about Playtech making a £700 million bid to acquire 888 Holdings, the owner of William Hill, has caused quite a stir in the gambling industry. However, it seems that 888 Holdings has rejected the offer, stating that it undervalues the company. This refusal to accept the bid may come as a challenge to 888's chairman, Lord Jonathan Mendelsohn, especially considering the company's recent share price decline.

It is worth noting that 888 Holdings has been facing some difficulties lately, as reflected by its removal from the FTSE 250 index. This downgrade indicates a decline in the company's market capitalization and overall performance. In response, 888 has appointed a new CEO in an effort to improve its prospects and regain investor confidence.

In terms of potential synergies, Playtech may be interested in integrating 888's brands with Snai, a leading Italian gaming company it acquired back in 2018. This move could potentially result in cost savings of around £170 million, which would likely be a significant motivator for Playtech.

Furthermore, there have been reports suggesting that Lord Mendelsohn has had early-stage discussions about a possible merger with DraftKings founder Jason Robins. If true, such a merger could create a powerful alliance between two prominent figures in the gambling industry. However, it's crucial to note that these discussions are still at an early stage and may not lead to any concrete agreements.

Overall, the situation surrounding 888 Holdings and its potential acquisition by Playtech is complex and fluid. The rejection of the initial bid, the challenges faced by Lord Mendelsohn, and the potential merger discussions all contribute to the uncertainty surrounding the future of the company. It will be interesting to see how these developments unfold and how they will ultimately impact the gambling industry as a whole.