UK Online Gaming Company Ladbrokes In Talks For Expansion

UK Online Gaming Company Ladbrokes In Talks For Expansion

UK Online Gaming Company Ladbrokes In Talks For Expansion -Image via Wikipedia

In 2006, Ladbrokes, the biggest online gaming firm in the UK,  hit the negotiating table. They were blueprinting a takeover of the small but growing 888 Holdings casino company. That is, until the US law Unlawful Internet Gambling Enforcement Act (UIGEA) came into being.

The value of 888 in 2006 during these talks was estimated at 470 million (GBP)pounds. After the US legislation has been in place for four years, with no signs of going away, the value of 888 Holdings is now 240 million(GBP)pounds. Ladbrokes now has the edge on their smaller competitor, and they still are hungry for the takeover.

As talks resume, Ladbrokes will look closely at the growth in online poker fraction of 888 Holdings, up in both player base and online traffic.  As of August 2010, 888 Holdings has shown growth of over 40%.

CEO Gigi Levy told eGR Magazine that the merger was “highly likely.” This would give Ladbrokes the dedicated software developed by 888 and intensify the value of 888 on the London Stock exchange, where it is currently traded along with Ladbrokes.

Although 888 Holdings has showed massive growth over the summer months, the more recent spring months had the company nervous about it’s stock value. They may be ready to merge with the established Ladbrokes and let them take the risks the future brings with US online poker. Ladbrokes is certainly in the better seat to take advantage of an over 200 million pounds savings over the 2006 offer.

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Posted by on Dec 24 2010. Filed under Online Poker News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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