After rumours of giant bookmaking company Ladbrokes considering a bid for online gaming provider 888 spread, the UK-based firm now confirmed it does have such plans in mind. In case they made a deal, it would most likely result in the merger of the two, having 888 as their brand name, as it already has its own licensed software.
Considering 888 CEO Gigi Levy is known to have mentioned 888’s possible involvement in some kind of “industry consolidation,” the news is not unexpected.Since Ladbrokes’ strength lies in its sports betting branch, while that of 888’s is online casino and poker, the merger would definitely be reasonable. Moreover, Merrill Lynch analysts claim that the combined business would produce earnings around £85 million (approx. $133 million) and synergies of c. £25 million ($39 million).
However, it is still a question which agent this merger is more profitable for. As for shares, 888’s prices went considerably higher on these news while those of Ladbrokes’ “dipped slightly.”
Considering 888 CEO Gigi Levy is known to have mentioned 888’s possible involvement in some kind of “industry consolidation,” the news is not unexpected.Since Ladbrokes’ strength lies in its sports betting branch, while that of 888’s is online casino and poker, the merger would definitely be reasonable. Moreover, Merrill Lynch analysts claim that the combined business would produce earnings around £85 million (approx. $133 million) and synergies of c. £25 million ($39 million).
However, it is still a question which agent this merger is more profitable for. As for shares, 888’s prices went considerably higher on these news while those of Ladbrokes’ “dipped slightly.”
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