Playtech Makes Bid for 888

888 has been fielding offers for years. The latest offer, from Playtech's Teddy Sagi, for a reported ₤200 million, was reported today in Israeli financial daily, Calcalist.

The one-time online gambling giant - when 888 Holding plc floated on the London Stock Exchange (LSE: 888) its worth was about a billion dollars - runs the successful 888 Casino brand. The company's value has diminished considerably over the years. 888's market cap today, after a considerable rise in its stock value following the latest developments, is about ₤169 million.

The $1 billion online casino software maker Playtech Ltd (LON: PTEC), has entered the picture with an offer to purchase 888 for an even higher value, estimated at about ₤200 million.

Earlier offers - for higher sums - were made by part-owner Avi Shaked and by the UK bookmaker Ladbrokes plc (LSE: LAD). Only last month, Ladbrokes offered as much as ₤240 million for 888.

Will They Sell?

There is no reason to believe that 888 will be sold. Offer after offer, 888 has refused, and the latest offer is only that - the latest offer, and for a diminished sum at that.

Playtech and Ladbrokes (and others) are interested in 888 for obvious reasons, regardless of its shrinking market cap. 888 is the world's largest online casino operator, with a strong presence in the coveted UK online gambling market.

Consolidation, Again

For years, the online gambling market has been talking - and practicing - consolidation. A combination of a competitive industry and regulations has companies join forces.

A notable mega-merger took place in 2008, between Playtech and William Hill plc (LSE: WMH). Both teams have benefitted greatly from the deal. And these days the market is following the pending merger between PartyGaming plc (AIM: PRTY), the world's largest online poker company, and online sports betting operator bwin Interactive Entertainment AG (DAX; ATX: BWIN).

Does this mean 888 will accept Teddy Sagi's offer?