Poll: Does a William Hill, 888, Rank tie-up make strategic sense?

Yesterday’s news that 888 Holdings and The Rank Group are plotting a takeover bid for UK giant William Hill appears to have caught much of the industry on the back foot.

While some anticipated a resumption of talks between 888 and William Hill following Hills’ failed ?750m bid last year, the involvement of Rank this time around, and William Hill being the target firm, has brought an added dimension to any potential deal.

Details of how a three-way transaction would be structured are still light on the ground. Indeed, William Hill this morning said 888 and Rank had not yet made clear the terms in which a deal could be completed.

The synergies to be gained through a combination of 888 and William Hill seem apparent. 888 is in pursuit of a proprietary sportsbook to complete its in-house product set – as its failed bid for bwin.party last year would testify.

Meanwhile, William Hill would benefit from 888’s highly regarded marketing and CRM capabilities and also advance Hills’ in-house casino strategy.

However, as William Hill suggested this morning, how Rank fits into the deal, and its own strategy to focus on digital, is not so clear. Rank, which owns the largest fleet of bingo and casino halls in the UK, says there is “significant logic” in consolidating the three businesses’ online and retail operations.

A successful merger would see the parent company run market leading land-based and online offerings across sportsbook, bingo and casino in the UK, with the resultant cost savings also an attractive element to a deal.

It’s also worth noting a merger could see former William Hill Online CEO, and current Rank chief exec, Henry Birch reunited with firm to lead the enlarged group.

With this in mind, this week’s EGR poll wants to know whether you believe a William Hill, Rank and 888 tie-up makes strategic sense. Have your say on the right-hand side of the page.