Caesars takes over William Hill
Casinos fans and especially sports betting professionals know William Hill , which is considered the UK's largest sports betting company. Exactly this is now to be taken over by Caesars. Not only do these two companies benefit from this billion-dollar deal – a third company could also be happy: Apollo.
Weeks of poker for William Hill
The decision It was not immediately clear who would take over William Hill. Over a period of several weeks, corporations and companies submitted their bids. From an economic perspective, this causesWilliam Hill's stock values to skyrocket. This primarily benefits William Hill, since a higher share price increased the value of the company.
But which companies submitted a bid? Primarily, these areCaesars and the private equity firm Apollo. TheCaesars was awarded the contract based on his bid: 3.2 billion euros. With the takeover, Caesars hopes to benefit from the growing sports betting market in the USA.
The private equity firm Apollo had also made an offer for the entire William Hill group. After this deal burst, at least the British part could go to Apollo. That's the rumor at the moment. It is not yet certain whether this will actually be implemented. If the idea doesn't work, further plans have to be worked out.
Caesars wants to keep all employees
As soon as one company takes over another, jobs are usually cut. Caesars announced in a first public statement that this will not be the case. The aim is tocompletely integrate the existing business in the USA. Anyone who deals with the story of Caesar will also believe it. After all, the group has existed since 1962.
Caesars then built a casino in Las Vegas thatlives up to its name: It was built in the style of the Roman Colosseum built. At the same time, this casino has another special feature: It is the only building that has been constantly expanded and expanded for years. Normally the buildings in Las Vegas are either dismantled or blown up. Only then will a new building be erected on the empty square.
Not so at Caesars Palace in Las Vegas. This building now offers more than 4000 guest rooms and the casino area covers 15,000 square meters. In addition, the building includes a 4,000-seat theater and a spacious outdoor area with a pool area. It is quite conceivable that the current six towers will be expanded to integrate an equally comprehensive sports betting area. In this case, the employees could – as announced – be retained. It remains exciting, however, asWilliam Hill currently employs almost 16,000 people. Integrating all of these into the existing organization could be difficult.
William Hill also operates online: Will these casinos remain?
William Hill does not only offer sports betting locally. In addition, the focus is not only on sports betting, but also on various games of chance. For this reason the companyin 2008 entered into a partnership with Playtech and was willing to pay a very high price for this: £144 million and Playtech's share of the sales . As a result, William Hill created some online casinos that enjoy great popularity.
This may also be due to the high welcome bonus and the cashback promotions offered by the online casinos.To what extent the online casinos will continue is not yet certain. At least there is no official report until today. It is also questionable whether Playtech's further participation can remain. If the existing contract were to be terminated, a different range could be offered in the online casinos. We will certainly be able to follow all this with excitement over the next few weeks.
Negotiations for a takeover have been going on for a long time
On the one hand, insiders are not surprised that Caesars is taking over William Hill. This is becauseCaesars already wanted to take over the sports betting company last year. However, the negotiations at that time came to nothing because the takeover bid did not fit. Now the time had come again and Caesars announced its interest a second time. And this year the casino group seems to be lucky. But why is Caesars so keen to take over the sports betting giant? Apparently, William Hill's business hasn't been doing so well lately.
The drop in sales is largely attributable to the UK government. As of April 1st 2019 there was a new rule that themaximum limit on sports betting was reduced from £100 per day to £2. However, this new regulation does not seem to be the only reason why sales are collapsing. In 2018, the company already posted a loss of over 800 million euros - before taxes.
The decline in sales may be the reason why William Hill agreed to the sale. This appears to be a stroke of luck for Caesars as the sports betting giant already has a presence in the US. Now Caesars just needs to push the sports betting business forward.The casino group would like to give up the British part for understandable reasons because it is not active in this country.