Extinguishing speculation of a U.S. sports betting and online gambling markets.
“The opportunity to combine our land based-casinos, sports betting, and online gaming in the U.S. is a truly exciting prospect,” Caesars Entertainment CEO Tom ReegWilliam Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to serve our customers in the fast-growing U.S. sports betting and online market. We look forward to working with William Hill to future growth in the U.S. by providing our customers with a superior and comprehensive experience across all areas of gaming, sports betting, and entertainment.”
“The William Hill Board believes this is the best option for William Hill at an attractive price for shareholders,” said Roger Devlin, chairman of William Hill.
Backdrop for the acquisition 491u47
Caesars is going all-in with an attempt to acquire William Hill, firing a salvo in a potential bidding war with a top private equity firm.@MattRybaltowski examines the latest market news. https://t.co/NTkW5I1CtF
— Sports Handle (@sports_handle) September 29, 2020
Caesars and William Hill had previously paired on a t venture in which William Hill gained market access through Caesars in certain states to offer its online sportsbook, and also outfit Caesars properties with William Hill-branded sportsbook lounges. This existing pact was a key driver behind William Hill’s decision to accept the Caesars offer — as taking Apollo’s bid would have imperiled that access agreement.
The $3.7 billion sum (£2.9 billion) represents a 25% to William Hill’s closing price of 217.60 pence on Sept. 24, the day before William Hill announced the two offers. The acquisition is subject to regulatory approvals and is expected to close in the second half of 2021.
This deal comes on the heels ofPennsylvania. PNG raised nearly $1 billion through a stock sale concluding Tuesday in an effort to place the sportsbook app in new markets.
By way of further background, Caesars Entertainment was previously known as Eldorado Resorts, which such as Ohio and California.
Put simply, there is still an enormous amount of growth ahead in the U.S. on both the legal sports betting and online casino/gambling fronts, which Caesars is seeking to get a jump on with combined assets, databases, and technology.
One element of those synergies is already manifested through separate media deal with CBS Sports.
“[This deal] recognizes the significant progress the William Hill Group has made over the last 18 months, as well as the risk and significant investment required to maximize the U.S. opportunity given intense competition in the U.S. and the potential for regulatory disruption in the UK and Europe,” Devlin said.
According to Reuters, Caesars will partly fund the deal with a $1.7 billion issue of new stock.
