It barely started and now a move by British Bookmaker William Hill to acquire 888 Holdings appears dead.
888 announced it had ended talks about the possible takeover. William Hill reportedly offered to pay 700 million pounds, or about $1.1 billion, for 888, but the companies were unable to reach a deal because of a “significant difference of opinion on value” by a major investor, 888 Holdings said in a press release.
“Due to a significant difference of opinion on value with a key stakeholder, it has not been possible to reach agreement on the terms of a possible offer and the board of the company has agreed with William Hill to terminate discussions,” 888 said in the statement.
The company did not identify the investor. However, trusts tied to the Israeli Yitzhak and Shaked families that founded 888 Holdings control about 60 percent of the company’s shares, according to data compiled by Bloomberg News.
Shares of 888 Holdings fell about 18 percent after the announcement.
The apparent rejection of the deal by 888 Holdings has mystified some analysts who feel Britain’s new “point of consumption” tax of online wagers has lessened the value of companies like 888 Holdings. Online gambling companies are also facing new European Union regulatory costs and taxes.
