DraftKings reportedly discussed a bid for 888 in the summer
The move underlined DraftKings’ interest in expanding internationally. Although it is yet to fully pursue this strategy.
Operator DraftKings reportedly discussed a bid to acquire 888 during June and July of this year with some of its top shareholders.
DraftKings’ Chef Executive Jason Robins held talks with shareholders from FS Gaming, who acquired a 6% stake in 888 Holdings in June of this year, about making an all-stock offer for 888.
Part of the plans in the deal that were discussed included the possibility of appointing former GVC Chief Executive, Kenny Alexander, as 888 CEO.
Analysts have viewed 888 as a takeover target for a number of reasons, including poor share price, compliance problems and a recent profit warning.
DraftKings eventually walked away from any potential deal in mid-July, when it was revealed that the UK gambling regulator had placed 888’s license under review over concerns about a longstanding tax bribery probe into GVC’s business dealings in Turkey during Alexander’s time as Chief Executive.
However, other concerns related to getting the deal over the line would have been that any bid would have been at a significant premium to its market capitalization and because of 888’s £1.7bn ($2.08bn) debt, which came about after the acquisition of William Hill’s non-US business from Caesars Entertainment last year.
Robins gave details about the potential deal following the announcement of DraftKings’ third-quarter results, saying: “888 is one we’re aware of, we’ve certainly watched it over the years, I know there’s been quite a twisty, turny story.
“I don’t even think 888 is up for sale at this point.”
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