In an effort to strengthen the value of 888 Holdings, an experienced group of gaming investors bought a 6.6% stake in the parent company of the legal sports betting sites William Hill and 888sport.
According to reports, Lee Feldman, the former chairman of GVC Holdings, and GVC ex-CEO Kenny Alexander joined forces with Stephen Morana, formerly of Betfair, and Daniel Shribman, an investment banker from B. Riley Finance, to create FS Gaming Investments.
These new shareholders could propose leadership and strategy changes, according to a Bloomberg report on Tuesday.
“We welcome the investment of FS Gaming, which we believe reflects the significant value-creation potential in our business,” an 888 spokesperson told Reuters. “We look forward to updating and engaging with all our shareholders as we continue to deliver against our clear strategic and operational priorities.”
The company's shares jumped 14% on Tuesday following the news report, and another 18% in early trading the following day.
Undervalued assets
Feldman and Alexander led GVC Holdings before the company that owns the online sportsbook BetMGM rebranded as Entain Group in 2020. FS Gaming knows its way around sports betting and sees 888 as a good investment.
“We think these are great assets that are currently undervalued,” Feldman said in the Bloomberg report.
888 reported a 73.7% revenue increase year-over-year back in April. The Gibraltar-based company made $1.53 billion and increased its adjusted EBITDA by 82% from the previous fiscal year.
One of the more prevalent sports betting sites William Hill non-U.S. assets acquired in 2022 by 888. The “world’s biggest bookmaker” is a renowned brand in the United Kingdom and throughout Europe.
More changes are likely coming for the gaming company that also owns SI Sportsbook, which is currently operating in Colorado, Michigan, Virginia, and Ontario. SI Sportsbook has plans to launch in Indiana, New Jersey, and Iowa.
