ITV, eBay, and oOh!media all make big moves this week
William Hill owner evoke has agreed to an all-share offer from gaming operator Bally’s Intralot for £243m – spelling the end of a turbulent period for the British gambling group, which prompted to search for a buyer by a rise in taxes.
This deal works out at roughly 52p per share, which is a 138% premium on evoke’s closing share price back in December before the potential sale was announced. Within this sale, shareholders can choose to take cash in lieu of shares, reports the Financial Times.
As the owner of both William Hill and 888, evoke is set to “significantly enhance” Bally’s Intralot’s position in the UK. This deal will see the new organisation rank second in interactive gaming in Britain, and fourth in online sports betting “supported by a strong retail presence,” Bally’s Intralot confirmed in a statement.
Evoke’s chair Mark Summerfield argued that the deal would deliver long-term value for shareholders.
“The combination will create one of the world’s leading online betting and gaming groups with superior scale, exceptional brands, increased diversification and a platform for strong growth through enhanced capabilities,” he said.
Leaders take
William Hill is a bastion of British betting, which was facing serious significant losses had there not been some sort of financial intervention.
This new deal, pending regulatory approval, will put the operator in a much stronger position going into 2027. The operator will likely be looking to take advantage of the upcoming FIFA World Cup with promotions surrounding the event to put itself on the front foot as it enters the new organisation.
CMA to review eBay’s purchase of Depop
The British regulator, Ofcom, has confirmed it is formally investigating the planned acquisition of Depop by e-commerce giant eBay.
The Competition and Markets Authority (CMA) has now closed its invitation to comment, after interested parties were given the chance to outline to the regulator how this deal might impact competition in the UK.
Leaders take
Depop, the second-hand clothes marketplace, is likely to bring a younger audience for eBay shoppers. The platform has roughly 56 million registered users and 5 million active buyers.
This deal represents an opportunity for eBay to strengthen its place in the second-hand clothes marketplace among younger audiences who might view eBay for primarily tech, furniture, and other household items.
eBay also owns Gumtree, meaning it has a fairly dominant hold on the second-hand market in the UK – although there are competitors such as Vinted and Facebook marketplace which offer alternative platforms for second hand buyers.
ITV and Sky still “actively engaged” in a deal
Leading TV broadcaster ITV is still moving towards a deal with American TV giant Sky (owned by Comcast), to sell its media and entertainment division.
“We are very much actively engaged in discussions,” CEO Carolyn McCall told the Enders TMT Leaders Live conference on Thursday.
Leaders take
This potential deal could pose serious problems for competition in UK television. It would be a shame to see such a longstanding British entertainment producer sold off to an American company.
oOh!media receives takeover bid from Bain Capital
Bain Capital, has thrown its hat in the ring for the takeover of Australian advertising organisation oOh!media.
This has triggered a three-was bidding war between Bain Capital, Squared Capital, and Pacific Equity Partners. This comes just a month after I Squared Capital made an indicative bid of $1.45 per share, which values the group at $766m and six weeks after Pacific Equity Partners (PEP) opened the contest with a $1.40 per share approach on 29 April.
Leaders take
Bain Capital was ranked 13th in Private Equity International’s PEI 300 ranking of the biggest private equity firms in the world, and the other two firms are also private equity firms.
Private equity firms don’t have a great reputation for improving the services offered by firms they take over, but are instead infamous for implementing cost saving measures at the expense of quality.
That being said, oOh!media has been losing revenue for several years, with a recent $15m cost saving restructure plan implemented – so hopefully a buyer is found that is willing to meaningfully invest in the company to improve its chances at success.
