The upper echelon at 888, encompassing the CEO, Chief Strategy Head, and Chief Financial Head, were utterly delighted with their purchase of William Hill’s operations outside the United States, deeming it a “monumental occasion.”
CEO Itai Pazner, joined by Chief Strategy Head Vaughan Lewis and Chief Financial Head Yariv Dafna, participated in a conference to elaborate on the implications of this latest acquisition for 888’s trajectory. To put it simply, they were quite enthusiastic, labeling it a “monumental occasion” for the enterprise.
Shortly before the conference, 888 had proclaimed an agreement with Caesars Entertainment to acquire William Hill’s non-US holdings for a substantial £2.2 billion (approximately $3.03 billion). Caesars had procured William Hill in its entirety back in April 2021 for £2.9 billion but swiftly opted to explore options for the European segments of the UK betting behemoth. There were rumors of Tipico, Apollo Global Management, and Betfred all contending for the prize, but 888 ultimately emerged triumphant.
Pazner spoke enthusiastically about the agreement, stating, “We believe this is an ideal partnership. The unification of 888 and William Hill is a guaranteed victory for our stakeholders.”
He added, “We’ve been examining numerous prospects, and this one truly stood out. It positions 888 in an exceptionally robust standing, and the financial advantages are simply remarkable.”
Lewis interjected, noting that this wasn’t their first encounter with William Hill. “This merger has been contemplated for years, and I’m overjoyed to finally witness these two powerhouses unite.”
The fervor surrounding this business union is tangible, and with good cause: the strategic thinking behind it is incredibly persuasive. The Chief Strategy Officer of 888 emphasized the prospective income of the unified company and the primary regions they are targeting. This fusion isn’t merely about expanding; it’s about establishing a dominant force with a varied income source – we’re discussing a fourfold increase in their current earnings! Speaking of dominant forces, this action will propel them to a leading spot in critical regulated sectors. Consider the UK, Italy, Spain – they’ll be a top-three contender in each. This union has been in the works for a while, and the enthusiasm for finally uniting these two titans is palpable.
However, it doesn’t end there. They’ve pinpointed six additional territories – Germany, Canada, the Netherlands, Romania, Denmark, and Ireland – that are primed for the taking, representing a combined worth of roughly $7.5 billion. They are certain they can utilize their joint strengths to become a leading power in these areas as well. And let’s not overlook the financial aspect. The agreement is appraised at £2.2 billion, but considering factors like capitalized lease expenses, the true cost is nearer to £2 billion.
The firm aims to secure £1 billion in financing to support the purchase. The CFO for 888 characterized the agreement as an opportunity to obtain “premium resources at a remarkably reasonable cost.”
Dafna also mentioned that the acquisition requires the consent of stakeholders, with an official ballot anticipated in the initial quarter of 2022. He remarked on his satisfaction with the “substantial backing from investors thus far” and stated that the group intends to finalize the transaction within the first six months of 2022.
Crucially for Pazner, the William Hill agreement won’t disrupt 888’s “promising US endeavors,” which center around their recent collaboration with Sports Illustrated (SI) sportsbook, launched in Colorado earlier this week.
“SI represents a robust US brand possessing a sizable and expanding customer base within the US,” Pazner explained. “Collaborating with them enables us to be considerably more calculated and productive with our US investments, with a distinct emphasis on harnessing the strength of the SI brand and positioning to attract customers more effectively and cultivate a lucrative enterprise over time.
“We are enthusiastic about the prospect of accelerating our US expansion strategies, entering additional markets shortly, while the William Hill team contributes a wealth of supplementary sports wagering knowledge, including their previous US operational experience.”
Pazner concluded the discussion by stressing: “This represents an extremely attractive transaction for both 888 and William Hill International.”