Ladbrokes Confirms Bid for 888

British bookmaker Ladbrokes confirmed on Monday that it is in talks to acquire online gambling firm 888, a day after announcing that it was in discussion for a possible offer.

Mega Deal

The Sunday Telegraph newspaper had reported that the bookmaker was considering an offer of around 70% per share, putting 888 at a total value of around 240 million pounds ($375 million).

New Ladbrokes CEO Richard Glynn is believed to be motivated by the need to strengthen Ladbroke's online presence, which is weaker than that of its main rivals.

The same issue was behind plans by his predecessor Chris Bell to buy 888 four years ago for a price of around 470 million pounds, a move that ultimately was not made because of the threat of legal action in the United States following the passage of the 2006 Unlawful Internet Gambling Enforcement Act, which effectively banned online gambling there.

Evaluation

According to industry analysts the takeover 888 would be a good move for Ladbrokes, which could combine its strong sports book with 888's big online portfolio, which includes 888 casino and B2B business Dragonfish.

Analysts also predict that it would help Ladbrokes narrow the gap between it and its main British rival William Hill, which has gone from strength to strength since signing a deal with online gaming software giant Playtech.