William Hill has announced that they will be bought out by Caesars Entertainment for roughly $3.7 billion. The British bookmaker confirmed reports last week that Caesars was looking to acquire the company, and now that deal is official.
According to a news release, the final deal will close during the second half of 2021, but shareholders of the bookmaker will still have to give a final vote of approval. The William Hill board of directors has given its approval, and it will encourage shareholders to do the same.
These two companies already have a partnership in the United States, but this new deal will create a sports betting giant. The sports betting industry in the US continues to grow, allowing the companies to position themselves near the top.
According to financial experts in the industry, it is believed that Caesars could eventually be worth between $30 and $35 million. Caesars just recently completed a merger with Eldorado Resorts, and the company has continued to explore opportunities to grow.
Caesars noted in this announcement that the acquisition of William Hill could generate between $600 and $700 million in sports betting revenue in 2021. This would put William Hill as one of the leaders in the United States sports betting industry.
William Hill is a sports betting giant in the UK, but it has failed to enjoy the same success in the United States. The company recently announced that it was closing more than 100 retail shops in the UK as the COVID-19 pandemic has caused some financial hardships with the company.
Caesars has made it clear that it does not plan to interfere with the UK side of operations for William Hill and is only interested in the US side of things. William Hill has been around for more than 80 years, causing a major shakeup throughout the company.
Apollo Also in the Mix
Caesars was not the only company looking to purchase William Hill as Apollo Global was also exploring this opportunity. Apollo is a private equity firm that was looking to invest in one of the biggest names in the sports betting industry.
Both Apollo and Caesars made informal proposals just last week to William Hill, and the company was reportedly considering each offer. William Hill issued a deadline of mid-October for a formal proposal to be submitted, and Caesars was able to quickly submit an offer.
Caesars was able to leverage its opportunity with William Hill by threatening to end the current partnership in the United States. William Hill could not afford to see that come to an end, which is why they chose the offer from Caesars over the offer from Apollo.
Apollo will continue to look for other opportunities to invest in a sports betting operator, and they will likely look within the United States. The company has been seeking investors for this potential purchase, and those investors will remain in place moving forward.