Betfred founders and owners Fred and Peter Done have bought a 3% stake in William Hill after stating the company was ‘massively undervalued’ within the UK compared to the US.
Retail Estate Interest
Although both companies have been rivals in the past, could the stake purchase indicate Betfred are interested in William Hill’s retail estate? After the reduction of FOBT’s maximum stake slashed to £2 last year, 700 William Hill retail outlets closed its doors in the UK.Betfred own around 1,500 betting shops in the UK, William Hill retail estate stands at 1,568 outlets, if they are to acquire William Hill’s retail estate this would place them level pegging on the high street with GVC, owners of Ladbrokes Coral.Speculation has been rife since the announcement of the 3% stake purchase, with some analyst’s believing the two companies may transact or even merge in the future.
Stronger US Foothold
Betfred continue to move forward with their transition in to US markets after securing betting partners in Iowa, Pennsylvania and Colorada, with further partnerships imminent in states where gambling is legal or about to become legal.William Hill on the other hand have already grown a large foothold in the US, running the majority of sportsbooks across the state of Nevada, its partnership with Eldorado Resorts has enabled them to expand further in other states.Only time will tell exactly what Betfred’s plans are regarding William Hill, the fact Betfred are looking to further expand its foothold in the US markets, plus the interest in William Hill’s retail estate could see future transactions between the two companies or could a possible merger be on the cards?