The recent stake in William Hill Online by software provider, Playtech, was finalized to the tune of £424 million . William Hill’s CEO Ralph Topping was very pleased of this venture and hoped that the full ownership would now further attract high growth and continue to boost the William Hill brand and continue to make it a high performing business.
Playtech transferred roundabout €177m worth of affiliate, marketing and other assets to William Hill in December 2008 for their share in the online joint venture, and further received €140m profit share over and above the £424m. William Hill only confirmed in October 2012 that it would start a formal valuation process of Playtech’s stake in its online business, and that is how both companies came to agree on the £424m valuation which was announced to the London Stock Exchange on the 1st of March 2013.
The joint venture was a huge success for both Playtech and William Hill as it delivered an annual growth of more than 20% during the past few years. However, the relationship soured and became increasingly strained during the partnership. This resulted in a mass walkout of approximately 600 William Hill Online staff in October 2011, which was allegedly organized by a number of senior marketers and ex-Playtech employees who were growing increasingly disgruntled.
[ratings]
