Although a deal is not yet signed, it only took an announcement confirming talks of a possible takeover between two online casinos companies to shake the online gambling industry in the right direction.
Talks were confirmed to have been taking place between 888 and bookmaker Ladbrokes, in which the bookmaker has made an offer to take over 888, a deal worth over 700 million dollars. Shares of the company have jumped an impressive eight percent in the London Stock Exchange in the day following the announcement.
The multi-million dollar takeover deal and the rise in its stock value have come after the online casino sector was in a relative slowdown in light of the new laws passed in the United States that effectively ban Internet betting starting later in 2007. A series of major consolidations were expected by experts to follow the legal developments and indeed, consolidations have taken place in the sector. The deal, however, if it takes effect, will by far be the largest.
Earlier reports had the company in talks with rival Partygaming, in a deal that was supposedly much larger. Reports expected the merger to reach the outstanding sum of three billion dollars. However, according to reports, its majority shareholders prefer a deal with Ladbrokes, a conventional gambling company, over a merger with another online gambling venture.
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