888 CEO Slams William Hill’s Hubris as Acquisition Bid Rejected

888s chief executive, Eyal Shaked, took to social media to criticize William Hill for being overly ambitious. Shaked expressed his anger over William Hill’s refusal of a substantial acquisition proposal from 888 and Rank Group, attributing their decision to inflated self-importance.

The Financial Times revealed that William Hill declined a £3.64 per share bid from their competitors. This valuation was determined based on the combined worth of 888 and Rank on August 5th.

William Hill’s CEO, Gareth Davis, characterized the proposition as a highly uncertain venture. The arrangement would have granted William Hill a 44.6% stake in the merged entity, which they intended to name BidCo. It would have also resulted in 888 absorbing Rank.

Davis further stated that the William Hill board did not believe that merging with 888 and Rank would provide them with a competitive advantage or generate greater returns for their investors compared to their existing approach.

On social media, Shaked argued that William Hill’s hubris would have negative consequences. He labeled their rejection of the £3.16 billion offer a critical error.

He concluded by stating that this was the final attempt and that 888 shareholders would be hesitant to invest further in William Hill.

This is not the first instance of 888 and William Hill expressing interest in each other. In the previous year, William Hill attempted to acquire 888 but was unsuccessful. Reportedly, one of 888’s major investors was dissatisfied with the proposed price, which was rumored to be approximately £7 billion.

Disturbed, Shaked voiced his displeasure on Twitter, stating, “The previous year revolved around ‘majority stakeholders pursuing increased earnings,’ and now we have this opportunistic maneuver. Until next year…”

Conversely, the joint announcement from Rank and 888 presented a contrasting perspective. They perceive this proposed agreement as an exceptional prospect for William Hill and its investors, assuring the release of substantial worth. They are keen to collaborate with the William Hill board and strive towards a recommended transaction.

Their aspiration for the arrangement? A dominant force in the worldwide wagering sector, particularly within the UK. They envision a multi-faceted betting behemoth, commanding the largest revenue and earnings in the UK, propelled by a potent fusion of physical and digital brands spanning sports wagering, casino games, poker, and bingo. This novel entity would harness the collective proficiency, material, and technological advancements of all three enterprises.

Nevertheless, the route ahead is unclear. The public discord between William Hill and 888 reveals a division that could disrupt the agreement. Davis’s contention that a tripartite merger wouldn’t generate greater value introduces an additional layer of intricacy.

Amplifying the uncertainty is William Hill’s unoccupied Chief Executive Officer role. With James Henderson’s exit in July, identifying a new leader might become paramount before any amalgamation can advance. Unless, naturally, there exists a strategy for Rank’s CEO, Henry Birch (former William Hill Online CEO), or 888’s CEO, Itai Frieberger, to assume control.

Apparently, both William Hill and 888 Holdings are preparing to bid for Rank Group. These days, consolidations appear to be essential for maintaining a leading position.