888 Receives Buy Out Bid From Playtech
Wednesday, 26 January 2011 | Written by Rachel Collins
Quite a few offers have been made to buy out industry giant 888 Holdings over the years, and the latest was received by Playtech. Calcalist, a leading Israeli financial news source, has reported that Playtech CEO Teddy Sagi has made a bold offer in excess of £200 Million for the coveted 888 Holdings asset. 888 has taken quite a fall since it first debuted on the London Stock Exchange with a market capitalisation of over £1 Billion - according to their current stock price the company is now valued at only £169 Million.
Playtech has fared much better recently, and it still retains a valuation of over a billion dollars. The £200 million reported bid for 888 pays a premium to their current valuation, but insiders suggest that this premium might not be high enough to convince 888's board to finally sell the company. This becomes more apparent seeing that 888 turned down a higher offer of £240 million from Ladbrokes just last month. Other offers from large shareholder Avi Shaked were similarly turned down.
888 still is the world's largest online casino operator, and they have an especially strong presence within the UK market. This continues to make them an attractive acquisition target despite their dwindling market cap. Maybe Playtech will be the one to finally take them over - Playtech does have a successful acquisition history dating back to its 2008 takeover of William Hill. We'll report on 888's response to this offer and further details of the story as they emerge.
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