Gambling’s Next Big Merger could be Between Ladbrokes and Playtech
Ladbrokes
Ladbrokes Casino have instigated talks with Playtech about potentially joining forces to create one of the largest online gambling companies in the world.
The merger is reported to potentially be worth £2.2 billion and is completely separate to Ladbrokes’ recent attempts to take control of fellow online casino operator 888. Early thoughts on the deal are that potential stumbling blocks could come in form of some of Ladbrokes’ online casino competitors who are powered by Playtech.
William Hill Online casino is thought to especially important to the deal as they currently have a deal with Playtech which would allow them to buy out after four - six years from 2008. This joint venture agreement means that Ladbrokes would have to reach some form of agreement with William Hill in order to be able to merge with the online software provider.
Since the news about the possible merger broke, Playtech Ltd gained 5.6% in London and has recently reported positive quarterly trading figures. However, according to the Daily Telegraph, a merger is just one of several options being discussed between the two parties but Ladbrokes are reported to have asked UBS and Greenhill to look at potential partnership strategies.
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