William Hill accepts £2.9bn bid from Caesars

The betting company confirmed last week that it had received an initial offer from private equity firm Apollo Management International in August, before Apollo and Caesars followed up with two cash offers. Caesars' offer of 272p per share values William Hill at £2.9bn. Apollo had yet to set out the terms of any offer at the time of writing.

A takeover from Caesars would represent the latest chapter in a growing partnership between the two brands. William Hill has been building its interest in the US market since launching across the pond in 2012, where it is now the largest sports betting operator. William Hill’s US sports partner Eldorado Resorts merged with Caesars in July, adding 29 casino sports books to William Hill’s portfolio. Earlier this month, a partnership between Caesars and US broadcaster ESPN was announced, which will feature William Hill across ESPN’s platforms. William Hill will be able to exploit Caesars' extensive US infrastructure and relationships, including its exclusive casino tie-up with the National Football League.

A union between William Hill and Caesars would also make sense given the stake recently taken in the British company by US activist fund HG Vora Capital Management. HG Vora acquired a 5.1 per cent stake in William Hill earlier this month, and has a similar position in Caesars according to FactSet data. HG Vora could not be reached for comment.

HG Vora also has a stake of around 10 per cent in online gaming operator Gamesys (GYS), which hints at the possibility of further consolidation in the gambling industry. In May, a merger was completed between Flutter Entertainment (FLTR) and The Stars Group (CN:TSGI), creating a gambling juggernaut that straddles the Atlantic.

Elsewhere, gambling software provider Playtech (PTEC) could be another takeover candidate. The company reported interim pre-tax profits of €10.5m (£9.6m) earlier this month, representing a 71 per cent slump on last year’s first half, after the coronavirus pandemic cancelled sports events and shuttered retail sites. 

One shareholder’s patience with Playtech has run out. Following the release of its half-year figures, Jason Ader, chief executive of Playtech shareholder SpringOwl Asset Management, lamented a share price performance that has “been underwhelming for years”. 

“It’s time for Playtech’s board to appoint a new chairperson and for shareholders to reflect on whether this company should remain public or be put up for sale,” he observed, pointing to fortunes of The Stars Group and Austrian gambling brand Bwin.Party following their sales.