William Hill and GVC Moving On Sportingbet Purchase
William Hill and GVC Holding are looking at a joint purchase of Sportingbet. It’s yet another sign of the seismic changes taking place in the gaming industry.
While the story is still developing, it’s believed that William Hill will be purchasing Sportingbet’s Australian operations, while GVC takes on the rest. (Currently, Australia accounts for as much as 90% of Sportbet’s total revenue.)
While the deal is far from completion, it’s believed that it could be worth as much as £350 million once all is said and done. The final figures will depend on which company winds up purchasing which part of Sportingbet.
News of the potential blockbuster deal sent Sportingbet stock prices soaring. Earlier today they were up as much as 16.9% over yesterday’s price. GVC’s stock went up a whopping 13%, while William Hill share prices took a small dip of around 1.9% as the news broke.
According to a press release on the GVC Holdings website the deal would be, primarily, a cash transaction.The release goes on to say:
The Boards of William Hill and GVC believe that by acting in combination they represent a highly credible possible offer for the entire Sportingbet business, substantially in cash.
No formal approach has been made to the Board of Sportingbet and there can be no certainty that any offer will be forthcoming and nor as to the terms on which any offer might be made.
Under UK law, the two companies now have until October 16 to make a formal offer or intention to continue with the deal.
What do you think of William Hill and GVC’s move on Sportingbet? Share your thoughts in the comments section below.