Caesars Extends a $3.7 Billion Dollar Offer to William Hill

Spread the Word:

Caesars has warned William Hill to take a $3.7 billion acquisition offer or leave the existing relationship entirely if it is ambivalent.

Last month, the UK-based bookmaker announced it had received competing offers from two rival companies, Caesars and Apollo Global Management. However, Caesars seems to be in an advantageous position due to its existing partnership. Currently, William Hill manages all Caesars sports betting operations, offering a stable revenue flow for the British company. It also provides market access in various states, particularly the Caesars brand, for any online gaming product.

However, Apollo has joined the high-profile acquisition expressing an active interest in taking over William Hill. This may perturb Caesars’ operators leading them to consider terminating the US joint venture with the London-based sportsbook if it is acquired by Apollo.

Strategic Rationale for Caesars and William Hill

Caesars stated that its offer was high enough that the William Hill board could recommend it to shareholders. The US-based operator said, “We believe that taking over William Hill would improve the customer experience and profitability as compared to our current joint venture with the William Hill in the US, which is complex and undervalued by the industry to the detriment of our existing stakeholders.”

As per the prospectus, the deal includes:

  • The chance for William Hill to cross-sell to Caesars rewards database
  • Unified customer experience across their sportsbook and internet casino platforms
  • Improved attractiveness as a potential partner for media entities
  • Broader market access

The US Business is the Prize

Caesars stated that it would sell off the British sportsbook’s non-US assets. The company said, “Our strategic focus remains on the opportunities in the US market for now.”

Furthermore, Caesars is issuing 30 million new shares worth roughly $1.7 billion in order to finance the acquisition. The US gambling giant will raise the remaining $2 billion through debt secured against the British company’s non-US business.

William Hill shares plunged 10% to 280p in September following a 40% rise when the offer was first revealed. The CZR offer comes in at 272p per share.

The possible takeover with a huge transaction involved also features the market perceptions of sports betting entities either side of the Atlantic. William Hill is still trading at 2.2x, even after the CZR offer compared to DraftKings, with 34x its 2020 revenue expectations.

While analyzing the situation, Harry Barnick said, “With regulation being determined on a state-by-state basis, Caesar’s huge existing footprint in the US will put WH in a strong position to capitalize on the changing market landscape.”

Related News

Caesars Palace
November 22, 2020

William Hill Shareholders Approve $3.7 Billion Caesars Takeover

William Hill shareholders have approved the proposed takeover of UK-based sportsbook by the Nevada-based Caesars Entertainment, Inc. The shareholders supported the $3.7 billion deal on a meeting held on Thursday, […]

read more
October 20, 2020

Caesars and William Hill Seal a $3.7B Takeover Deal

Caesars Entertainment has outplayed its rival Apollo by sealing a $3.7 billion cash takeover deal with betting operator William Hill. The deal to acquire the UK-based sports betting operator is […]

read more
William Hill store front UK
May 7, 2021

Caesars to Shed William Hill Name by the Upcoming NFL

Caesars Entertainment has planned to shed William Hill’s brand name from its retail and online sports betting operations by the upcoming NFL. The announcement comes less than two weeks after […]

read more
Draftkings Logo - The Game Inside The Game
July 17, 2021

DraftKings Will Offer Live Streaming of MLB Games, with Live Betting to Follow

DraftKings and Major League Baseball (MLB) have extended their almost decade-long relationship, to now include live streaming of league matches directly on the Draftkings app. The deal announced Friday marks […]

read more
William Hill store front UK
January 4, 2021

Caesars Obtains Partial Clearance for $3.7 Billion William Hill Deal

Caesars Entertainment announced last Monday that it had received partial regulatory clearance to acquire the UK-based bookmaker William Hill. The Nevada-based casino and hotel company required clearance under the Hart-Scott-Rodino […]

read more
Colts Team
October 31, 2020

Caesars Entertainment & William Hill Ink Deal with Indianapolis Colts

Caesars Entertainment and its sports betting partner William Hill recently signed their first NFL sponsorship deal with Indianapolis Colts. The multi-year partnership will make the Las Vegas-based company a sports […]

read more
June 6, 2019

GVC Holdings Approved to Offer Online Sports Betting and Poker in Nevada

Online poker players in the Silver State who want an alternative to may be in luck after the Nevada Gaming Commission (NGC) approved GVC Holdings’ application for an interactive […]

read more
October 17, 2020

Companies Including Caesars to Purchase William Hill

Many suitors including gambling giant Caesars are wanting to purchase betting operator William Hill to get the company out of the United Kingdom. In recent years, the London-based company has […]

read more
Caesars Sportsbook
August 4, 2021

Caesars Sportsbook Unveiled Following William Hill Acquistion

Caesars Entertainment on Monday unveiled its new sportsbook – Caesars Sportsbook – as part of the rebranding of the William Hill Sportsbook. The majority of William Hill retail sportsbooks also […]

read more
MGM sign
January 6, 2021

MGM Resorts Raises Offer For Entain Acquisition to $11 Billion

MGM Resorts International has made an $11 billion offer for UK-based Entain Plc in a recent wave of trans-Atlantic mergers after their earlier $10 billion all-cash offer was dismissed. However, […]

read more
Caesars Casino
April 21, 2021

Caesars $3.7Bn Acquisition of William Hill Closing This Thursday

Caesars Entertainment is set to complete its $3.7 billion acquisition of William Hill on Thursday following a UK court’s ruling earlier this week. On Tuesday, the High Court of Justice […]

read more
Football stadium in Michigan
May 21, 2021

Michigan Online Sports Betting Fastest to Become a Billion-Dollar Industry

Michigan online sports betting is now the fastest to become a billion-dollar industry in its third full month following its launch on Jan. 22. According to the monthly report released […]

read more

Stay Updated & Receive Exclusive Offers

Be the first to know when new states legalize online gambling and gain access to exclusive casino and sports betting promotional offers.