Caesars signals possible purchase of UK bookmaker William Hill for $3.7B

William Hill
William Hill, Hampden Park Glasgow

Caesars Entertainmen Inc (NASDAQ: CZR) is in final negotiations to purchase U.K. betting firm William Hill PLC (OTCMKTS: WIMHY) for $3.7 billion as U.S. sport-gambling continues to grow in popularity.

Last week, William Hill confirmed receiving separate buyout offers from Caesars and Apollo Managemen (NYSE: APO). Caesars’ offer comes with a 25% premium following closing share prices last Thursday, a day prior to William Hill’s confirmation of the proposals.

Although William Hill has been pummeled by the COVID-19 pandemic, U.S.-based profits have surged, making up 7% of the company’s revenues in the first six months of 2020.

Signup for the USA Herald exclusive Newsletter

According to a report from Macquarie Research, U.S. online sports betting and gambling is projected to generate $18 billion in revenue by 2025. The top three players in the market include Caesars with a 12% share, Draftkings Inc (NASDAQ: DKNG) at 20%, and Flutter Entertainment PLC (LONDON: FLTR) at 28%.

Caesars’ acquisition of William Hill would be fitting since William Hill has an existing partnership with Caesars. Earlier in September, William Hill announced that Caesars had signed a deal with ESPN to integrate its odds into the ESPN website and Fantasy app in states where sports betting is legal.

Caesars is performing final due diligence of William Hill

In a recent statement, Caesars said the deal is undergoing final due diligence with an expected close in the second half of 2021. Granted, the deal is ongoing and an agreement has yet to be reached between the two parties.