HomeGambling IndustryConsortium seeks to usher in changes at 888, boosts company value

Consortium seeks to usher in changes at 888, boosts company value

3 min. read
888 Holdings' official logo.

News about 888 Holdings has not been the best of late, with the company facing some pressure in its Middle East VIP accounts and seeing Group Chief Executive Itai Pazner step down at the beginning of the year.

The latest trading update was a reason for optimism, however, with the company stating that most of the recent regulatory headwinds have been put behind it, including an enforcement action in the UK.

The UK Gambling Commission and William Hill, which 888 acquired in 2022, settled for a record £19.2m. Now, a new minority consortium that owns 6.6% stake in the London-listed company, 888, wants to guide the company and enact changes designed to ensure that it continues to steer towards profitability and long-term resilience.

The news was originally shared by Bloomberg and later confirmed by a regulatory filing, Yahoo! Finance wrote. The consortium includes respected industry heavyweights, including Lee Feldman, the former chairman of GVC Holdings Plc., which rebranded as Entain Plc.

The news that there will be changes – or at least an attempt to enact changes – pushed 888’s stock favorably on Tuesday, with the company’s market capitalization reaching $446 million at closing time. Feldman’s consortium includes other Entain veterans, including Shay Segev, who was briefly a Chief Executive Officer, before he left for a job with DAZN, and Kenny Alexander.

The list goes on to include Daniel Shribman and Stephen Morana, both known faces in the industry. This consortium has already reached out to 888 to discuss with the company ways to boost its value.

888 is struggling to recover from a slump that commenced in 2021 when the company’s valuation hit an all-time high of £1.8bn before 888 decided to take on more debt and seek to acquire the remaining assets of William Hill outside of the United States. At the time, Caesars Entertainment acquired the popular British bookmaker’s US holdings.

The consortium has reached out to the company to discuss potential strategy and leadershipchanges designed to boost shareholder value, something, the company said on Tuesday, it welcomed readily.

"We look forward to updating and engaging with all our shareholders as we continue to deliver against our clear strategic and operational priorities," an official statement by the company read.

888 has welcomed what the company has called an investment which "reflects the significant value creation potential in our business," but there seems to have been no information shared with the press – either openly or through backchannels – as to what amounts is being discussed or have been agreed upon as of right now.

Image credit: 888 Holdings

TOPICS: 888 Holdings
06 Jun 2023
3 min. read
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