British gambling group 888 said today it was in advanced talks with Caesars Entertainment for a possible acquisition of the international operations of the US company's William Hill business.
The brief statement followed a Times report that said 888 had outbid Apollo for the assets, which became part of Caesars when it took over London-based William Hill in a $4 billion deal earlier this year.
"Such a deal would create a materially larger business, relevant to many more investors, with a period of synergy extraction ahead to offset any negative regulatory changes, particularly in the UK," Peel Hunt analysts said.
"We would expect management to make a good case for enhancing the online business and extracting at least marketing value from retail," they added.
Shares of 888, which have surged in value during the pandemic amid a spur in online betting volumes during lockdowns, were up about 2% today.
Caesars Entertainment's acquisition of William Hill was part of a wider consolidation in the gambling industry, with American companies buying out London-listed groups to gain more expertise as the US opens up to sports betting.
The British firm did not respond to a Reuters request for comment regarding how it would fit William Hill's assets with 888's existing betting platforms, which are exclusively online.
