Being number 2 in the market should make you work harder. Sounds like an advertisement for Avis. But this refers to DraftKings’ supposed takeover bid over the summer to 888 Holdings plc, which owns William Hill.
The Financial Times reported the news on November 9.
In September 2021, the company announced its purchase of William Hill’s international business from Caesars Entertainment, a move which made it more attractive.
A DraftKings spokesperson told the Times the operator speaks to a variety of companies during “the normal course of business,” and that it’s “focused on the massive U.S. opportunity” going forward.
By market share, DraftKings is the second-largest online sportsbook operator in the U.S., but the growth in iGaming—fostered by the acquisition of Golden Nugget Online Gaming (GNOG)—boosted its monthly revenue in August over that of rival FanDuel for the first time.
The Times reported that DraftKings held preliminary talks with 888 in June and July. That was around the time that FS Gaming Investments, an investment group led by former GVC CEO Kenny Alexander, revealed it took a 6.57 percent stake in 888.
In fact, FS Gaming was one of the 888 shareholders with which DraftKings was said to have discussed a takeover of the William Hill owner. Adding to the intrigue is that the suitor reportedly walked away from talks after the U.K. Gambling Commission (UKGC) announced William Hill’s license was under review because of the supposedly questionable fashion in which GVC, under Alexander’s leadership, divested a Turkish business.
Prior to that, FS Gaming presented a plan to the gaming company’s board under which Alexander would become CEO. FS Gaming also told the board it wanted to install Stephen Morana as finance director, and to replace 888 Executive Chairman Jonathan Mendelsohn with former GVC Chairman Lee Feldman. 888’s board held talks with FS, but those discussions were halted amid the regulatory scrutiny.
It’s unclear if Alexander would have orchestrated a sale of 888 to DraftKings had he been installed as chief executive officer.
888 isn’t the first European gaming company DraftKings has had flirtations with. But the suitor returned with a $22.4 billion cash and stock proposal.
The negotiations ultimately fell apart, and at that time, there was speculation that DraftKings was simply aiming to run up the price of Entain for other companies that may have been interested in courting the Ladbrokes owner.
As for DraftKings and 888, one of the latter’s top 10 shareholders told the Times they would have viewed an offer from DraftKings as credible, and would have, at the very least, listened to the pitch.
