Hot topic these days in the gambling industry was the gossip that Paddy Power might try to take over its rival Ladbrokes. According to the information that was published in a UK online magazine, Paddy Power plans to make a £1.6 billion bid for Ladbrokes’s retail and online operations.
This means that the company is prepared to pay 175p a share in order to acquire one of the best established casinos in the industry. Soon after the news hit the public, Ladbrokes shares noted a growth of 2.2p to 122.3p per share.
It is interesting that Paddy Power is always somehow connected to Ladbrokes since the company is very keen on taking over Ladbrokes’ underperforming online operation and merging it with its very successful offering.
Ladbrokes, on the other hand, has been constantly trying to match the online success of other leading online gaming sites. Its latest attempt includes Jim Mullen who was named the company’s new CEO. Mullen has come to replace Richard Glynn and promised to transform Ladbroke’s struggling digital and online performance. Those who are well informed about the people in the online gaming industry might recognise Mullen as the person who used to run the online unit at another fan favourite destination – William Hill Casino.
Experts see Paddy Power’s possible bid for Ladbrokes as yet another attempt of the group to expand its UK retail footprint. Ladbrokes has an excellent performance when it comes to retail business, which would be a great addition to Paddy Power’s strong online presence.
From online players’ point of view, this kind of acquisition activity wouldn’t change things too much. Paddy Power will continue offering an excellent online gambling service, whereas Ladbrokes customers will have to wait and see what the future has in stock for their favourite online gaming site.