William Hill Now A Sure-Fire Stock Market Bet
October 02, 2020
But – its not all bad news. Despite a risky situation made even more financial whiplash-inducing by an upcoming U.S. presidential election and something smacking of a full-blown recession, stocks – and in particular sports betting stocks – recently made for a bit of an uptick on several global exchanges. So much so, that by close of business on Friday, the S&P 500 had gained an incredible 12 points (up to 3,259), the Dow Jones Industrial Average had improved by 70 points (up to 26,885), and the Nasdaq Composite closed 91 points higher than what it had started out at that very morning (up to 10,764 points).
And as for what helped ignite the sudden hike, a William Hill bidding war has had more than just a little to do with it all.
The U.K. bookmaking giant on Friday announced the recent tabling of two separate cash proposals – one by Las Vegas casino giant Caesars Entertainment, and the other by private equity and investment firm Apollo Management International. The latter just so happens to also be involved in a bidding process involving the takeover of the Walmart-owned Asda chain of retail grocery stores and supermarkets. Other Apollo Management endeavours have included Ladbrokes Coral, Endemol Shine, and armed response and personal security giant ADT.
Needless to say, the prominent bookmaking market leader’s stock exchange announcement not only sparked a 40 per cent hike in terms of the value of its own shares, but also a right roar on the stock market itself. According to the takeover information made public by William Hill, the first of the two take-over proposals was received on August 27, being from Apollo Management. A further proposal by the same party followed soon after, and a different proposal altogether got tabled a little later on by casino and gaming entertainment behemoth Caesars Entertainment.
But in order to turn any of the initial proposals into actual offers, the interested parties will have to before or on October 23, 2020 lodge actual written offers to purchase. The bookmaker has in the meantime confirmed that talks regarding said proposals by both parties remain ongoing.
Confidence A Long Time Coming
Notable too is the fact that both interested buyers share a history and a connection with William Hill.
Apollo Management, for a start, was part of a group of private investors that at the turn of the century proved instrumental in the buyout of the Harrah’s group of companies – Harrah’s being of course the group that would later on be renamed Caesars Entertainment. What’s more, by the time the Harrah’s buy-out had been catalysed, William Hill was already a digital partner of the company now known as Caesars. All of which obviously indicates a massive load of exceptional commercial confidence in the bookmaker in its current state and status.
As for which of the two investors are banking most on winning the bidding race, Caesars is not surprisingly boasting the popularity vote. Combining William Hill’s U.S. operations with that of Caesars Entertainment could very well lead to the coming into being of one of the biggest sports betting role-players the U.S. has seen to date.
William Hill has just become a global stock exchange tailwind of note.