The operator recently announced a £2.2bn deal to acquire William Hill International, excluding its US business, from Caesars. This acquisition significantly changes the scale and diversification of 888’s business, creating a robust and large entity. 888’s technology and gaming-led business, combined with William Hill’s sports-led business, will position the enlarged company for continued growth. The deal also provides increased cash flow from mature markets to boost growth in the US through the Sports Illustrated sportsbook brand.
Despite being an online business, 888 will retain William Hill’s extensive network of betting shops in the UK. However, there may be a focus on certain brands, potentially leading to a de-emphasis of secondary ones like Mr Green in markets where the William Hill brand is strong. The auction process generated significant interest, ensuring a high sale price for William Hill.
The success of the deal will rely on proper execution, with key decisions to be made regarding management, technology, brands, and marketing. Integration challenges will need to be overcome, and the companies may need to seek outside expertise to ensure a smooth process. There are various potential outcomes for the deal, but overall, the acquisition presents a logical strategic move. The ultimate measure of success will be the ability of the combined entity to establish market leadership in territories where 888 and William Hill have previously struggled.
