The deal between the board of William Hill and Caesars Entertainment Inc was accepted last Wednesday in a deal worth £2.9 bn. What’s more, the buyers, who are rivals and not private equity, look set to break up the iconic UK gambling company.
Caesars have been looking to strengthen its online sports betting segment in the U.S., an area that is going from strength to strength. The U.S. sports and online betting market is expected to be worth up to $35 bn, and Caesars plan to take advantage of their opportunity in the sports and gambling arena with the new amalgamation.
William Hill had been focusing on its U.S. business since 2018 when the supreme court legalised sports betting. Caesars plans make the London-based American assets its prime focus and find appropriate partners to take over the non-U.S. William Hill assets which could sell for as much as $2 bn to $4.5 bn, but it would mean breaking up the company.
Apollo Global Management Inc, who were also in the running for the takeover, are no longer in contention after Caesars’ bid was confirmed.