Poll results: 888 and Rank should combine without Hills
Majority of respondents to this week's poll feel there's still value to a merger despite absence of sportsbook
888 Holdings and The Rank Group should merge in a two-way combination, despite pulling the plug on their joint-attempts to acquire William Hill, according to respondents to this week’s EGR poll.
Earlier this week, we asked whether the two casino and bingo firms should form a union no matter what the result of their pursuit of Hills, with yesterday’s news confirming a three-way tie-up was off the cards.
And 61% of respondents said this shouldn’t mark the end of 888 and Rank’s relationship, with a combination of the respective online and land-based giants likely to have its own benefits.
888 would no doubt add a great deal to Rank’s non-proprietary, and relatively modest, online offering, with the online operator well versed in digital casino and bingo products, marketing and CRM.
Meanwhile, Rank could provide a boost to 888’s online businesses with the former’s customer database in the region of three million registered players, many of whom have yet to make the transition online.
The pair are also customers of sportsbook supplier Kambi, which should make things slightly easier from a contractual and technological perspective.
However, 39% of respondents said the two firms should part ways now the Hills’ deal appears to be dead.
888 is on record as wanting its own proprietary sportsbook with the desire to combine with Hills the driving force behind the recent proposals.
While a union of 888 and Rank would deliver cost and revenue synergies, the potential upside may not be enough to outweigh the risk, while a sportsbook-less deal may still leave 888 feeling slightly short-changed.