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After a failed attempt to acquire mega online casino company 888.com four years ago, The United Kingdom’s biggest bookmaker, Ladbrokes, is trying once more.
It was revealed Sunday night that Ladbrokes is offering around £240m or 70p a share. That is nearly half of what they offered four years back but the industry is in constant flux and online casinos in particular have been battered by the current economic crisis.
The initial deal fell through after fears that 888.com would become a target of US prosecution. 888 has yet to strike a deal with US authorities though they have considered that option. Rivals PartyGaming and Sportingbet have been settled with the United States government.
An 888.com acquisition would be the first purchase by Ladbrokes since it broke free from the Hilton Hotels group in 2005.
Ladbrokes online business has had a tough time competing with William Hill, the UK’s second biggest bookmaker operation. This has resulted in a major shakeup of Ladbrokes Internet arm in recent months.
New Chief Executive Officer Richard Glynn has dubbed his efforts to build the online brand and ultimately compete with the likes of William Hill as “Project Galvanise”. That plan also calls for doubling the company’s share price in five years.
- Aaron Goldstein, Gambling911.com
