Possibility that William Hill Will Buy Playtech in 2013


03/29/2012
By Maria McCoyGoogle

Rumors abound in the gaming community this week that the UK gambling giant, William Hill, is considering buying Playtech, one of the world’s largest online casino games software developers in 2013.

Playtech and William Hill are already partners in a long-term online venture, which generates about forty percent of the betting operator’s profits. Currently, Playtech owns a twenty-nine percent share of William Hill Online. In 2013, William Hill will legally have the right to buy out the 29% share.

Ralph Topping, CEO at William Hill, stated that he and chairman, Gareth Davis, met on a monthly basis with partners at Playtech. He elaborated, “Discussions about the future are positive … despite colorful episodes over the past three years [the joint venture] has been good for their investors and good for our investors. The current arrangement is one that needs to change – both organizations recognize that.”

William Hill initially believed that their profits would suffer because of the state of the economy in the UK. Despite their fears, they have continued to grow their operating profits by seventeen percent online. They saw a four percent decline in profits in their standard shops, of which they have almost 2,400 across the UK. CEO Ralph Topping said, “I think you are seeing the working man saying that some of his pleasures are just not going to be foregone. He’s not spending on a new car and might be cutting back on holidays but he needs a bit of brightness in his life.”

 

 


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