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The company behind 888poker, 888 Holdings has confirmed that William Hill LPC has made an offer to buy the company for £744 million. As a result of the news, 888 Holding share rates increased by 20%.
Last week you could already hear rumours about William Hill making a purchase offer for 888 Holdings, the company behind 888poker. The rumour was confirmed on Wednesday by 888 Holdings in a press release:
"10 February 2015
888 Holdings Public Limited Company
(the "Company")
Media speculation
The Board of the Company notes the recent press speculation concerning the possibility of an offer being made for the Company.
The Board of the Company confirms that it received an approach regarding a possible offer for the Company by William Hill PLC. There can be no certainty, however, that any firm offer will be made nor as to the terms on which any firm offer might be forthcoming.
The Company's shareholders will be kept informed of relevant developments and a further announcement will be made as appropriate, but in any event by no later than 28 days from the date of this announcement."
After the announcement, the 888 Holding share rates increased by 20% to 172 pence/share, but William Hill shares have also seen a 7% increase to 384 pence/share.
Times magazine, which was the first media outlet to report the news claims that William Hill made an offer of 210 pence/share which would equal a total price of £744 million. The founders of 888, the Shaked family allegedly wants at least 300 pence/share which is a big difference even compared to the increased share prices.
It will be interesting to see what happens to the companies if they manage to make a deal, many players believe that William Hill might leave the iPoker network and bring over his strong sportsbetting customer base to 888poker, which is currently the room with the most traffic behind PokerStars. Others have speculated that 888 could join the iPoker network, creating a strong network that could have a very steady second place behind PokerStars in the online poker market.