William Hill Gambling Stock
- William Hill Sports Betting Stock
- William Hill Gambling Stock
- William Hill Gambling Stocks
- William Hill Gambling Stock
William Hill confirmed last Friday that it was in takeover talks with Caesars and Apollo, sending its stock rocketing up 43% in London trading. The shares fell 11.6% on Monday on news of Caesar.
- Caesars Sportsbook by William Hill will also become a sponsor of ESPN's Fantasy products, extending an existing relationship as ESPN's exclusive odds provider. Caesars Entertainment shares recently.
- William Hill is the world’s largest betting brand. In the UK alone, they have 2,325 betting shops. They also operate an online gambling site available in 24 languages and 10 currencies.
- Late last week, it was reported that William Hill Plc (WIMHY) is the target of takeover attempts by Apollo Global Management Inc., a private equity firm with a history of investments in the gaming sector, and Caesars Entertainment Inc.
The stock market has whipsawed investors lately, with up days often following down days, and vice versa. Market participants remain stymied by all the factors they have to consider right now, including the November elections, the coronavirus pandemic, the economic recession, and the ever-changing views on fiscal and monetary policy.
All of those issues are creating uncertainty, but investors set those concerns aside early Friday. Just before 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 70 points to 26,885. The S&P 500(SNPINDEX: ^GSPC) had gained 12 points to 3,259, and the Nasdaq Composite(NASDAQINDEX: ^IXIC) was higher by 91 points to 10.764.
Sports betting stocks found themselves in the spotlight on Friday. One company has become an acquisition target, and the potential for a bidding war has helped to send stocks across the industry higher. Below, we'll look more closely at whether now's the time to bet on sports betting's future.
William Hill gets interest
The immediate cause for investors to pay attention to sports betting stocks came from U.K. bookmaker William Hill (OTC: WIMHY). The company confirmed that it has gotten at least two written proposals concerning a possible takeover. Apollo Global Management (NYSE: APO) was the first to make its bid, coming toward the end of August. After that, William Hill got an updated proposal from Apollo as well as a separate offer from Caesars Palace operatorCaesars Entertainment (NASDAQ: CZR).
The three companies have histories that are intertwined. Apollo was part of the group of private equity players that participated in the late 2000s leveraged buyout of Harrah's, the predecessor name of Caesars Entertainment. Caesars and William Hill have already been partners on the online side, with suggestions that combining William Hill's U.S. operations with Caesars could create a big player in the gambling industry.
The fact that William Hill became a supplier of betting odds information for Disney's (NYSE: DIS) sports network ESPN was also a big win for the U.K. company. That made William Hill an even more attractive prize for investors.
Gains across the industry
The news about William Hill has the entire gambling sector doing well. Global giants Wynn Resorts and Las Vegas Sands were up only 1% to 2% Friday morning, but more U.S.-centric companies outperformed. MGM Resorts gained almost 3%, while Penn National Gaming, Boyd Gaming, and DraftKings all rose 4% to 6%. Horse racing venue Churchill Downs enjoyed even sharper gains of more than 9%.
Investors see a lot of tailwinds for the industry. Reopening markets in the U.S. looks like more of a certainty, because state governments have had their normal sources of tax revenue dry up as a result of the pandemic and massive unemployment; meanwhile, their expenses have risen to fight the coronavirus. Tapping online gambling as a new source of revenue is an obvious answer.
One M&A deal isn't necessarily going to change the landscape of sports betting across the industry. But it does highlight just how important the fast-growing niche has become. With stock investors always on the lookout for promising growth opportunities, what happens to William Hill could foreshadow a whole lot more activity in sports betting in the months and years to come.
William Hill Sports Betting Stock
Dan Caplinger owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool recommends Boyd Gaming and Churchill Downs and recommends the following options: long January 2021 $60 calls on Walt Disney and short October 2020 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.
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William Hill shares jumped 32% in London today as the bookmaker confirmed it has received multiple cash buyout offers from US companies.
William Hill released a note indicating offers from casino giant Caesars Entertainment and New York investment firm Apollo Management International.
Hill said it received an initial proposal from Apollo on Aug. 27, before a further proposal from Apollo and proposals from Caesars.
“Discussions between William Hill and the respective parties are ongoing,” the company said. “There can be no certainty that any offer for William Hill will be made, nor as to the terms on which any offer might be made.”
Under M&A regulations, Caesars and Apollo now have 28 days to announce a firm offer for William Hill or announce they do not intend to make an offer.
William Hill Gambling Stock
William Hill shares jumped 32% to 288 pence on the news, valuing the company at around $4 billion.
William Hill Gambling Stocks
William Hill M&A speculation
The announcement was sparked by a Bloombergreport today that William Hill had been approached by Apollo.
The Caesars interest has also been making the rounds in the industry. Multiple analysts noted this week that Hills and Caesars could form a US joint venture including the William Hill US assets.
Roth Capital analyst David Bain said a CZR/WMH interactive spinoff was likely to happen this year, “well-ahead of investor expectations”.
The US betting business would likely receive a valuation bump simply by moving to US equity markets. It would also benefit from being separated from the rest of the European and UK business.
Caesars already owns 20% of William Hill US, while Hill manages the Caesars betting operations.
More on William Hill in the US
William Hill offers online sports betting in six states:
- Colorado
- Illinois
- Iowa
- Nevada
- New Jersey
- West Virginia
It also powers the Rhode Island Lottery app’s trading services, in addition to retail sportsbooks in additional states.
William Hill Gambling Stock
William Hill also restructured its UK operation earlier this year. The company combined online and retail into one division that could feasibly make it easier to sell-off.