William Hill has seen a recent surge in stock prices in the United States, despite seeing stocks decline during the COVID-19 pandemic. It was recently revealed that a pair of companies are looking to purchase William Hill, which has led to the rise in stock prices.
The board of directors for William Hill finally confirmed the rumors on Friday, despite keeping most of the information under wraps. William Hill did point out that it’s unclear if any of these offers will be accepted, and negotiations are still ongoing.
Industry sources have determined that Apollo made their first proposal to buy William Hill on August 27, and they have submitted several other proposals since that time. William Hill has also received several proposals from Caesars.
Caesars and William Hill are already partners, but this would make Caesars the new owners of William Hill. Apollo is a private equity firm that is looking to make another big move in the sports betting industry.
William Hill is one of the biggest sports betting operators globally, but the company announced that it would close over 100 stores in the UK. The closure has prompted these two companies to reach out and ask about buying the company.
Apollo in on Other Deals
Apollo might not be a well-known name in the gambling industry, but the company has already made plenty of significant investments. The company is always looking for new companies to invest in, but this would become their biggest move in the gaming sector.
Currently, Apollo is in a battle with TDR Capital LL to purchase Asda from Walmart. Asda is a major supermarket chain in the UK, and Apollo appears to be focusing on the UK at this time.
Sources say Apollo already has a debt package valued at $4.7 billion in place to purchase Asda, but it is unclear if they have funds to purchase William Hill.
Caesars/William Hill Would Become Sports Betting Giant
There is no doubt that the rest of the sports betting industry is keeping a close eye on this news, as a potential deal between Caesars and William Hill would create a sports betting giant. Pairing one of the biggest United States operators (Caesars) with one of the biggest international operators (William Hill) could be an industry-changing merger.
This deal would likely force some gaming commissions to closely examine this merger and determine whether or not to allow the merger to go through. Other sports betting operators will likely lobby these commissions to keep these companies out of the state.
Official Deadline Set
William Hill has not publicly commented on the offers from Apollo and Caesars, but they have reportedly set a deadline for a formal offer to be submitted. The deadline falls in line with takeover rules put in place by the United Kingdom.
Caesars and Apollo have until October 23 to make a formal offer to the company, or they will be forced to walk away. Industry experts believe that both companies will submit a firm offer before the deadline, which could eventually turn into a bidding war.