What? William Hill has entered into preliminary talks about a purchase of Probability, the mobile gambling company.
So what? An acquisition of Probability would add to William Hill's offering for users of smartphones and tablet computers.
Probability provides mobile technology platforms and owns a number of brands under which it markets its own games. The Gibraltar-based company specialises in high-volume, low-value games and is best known for the LadyLuck's online casino brand.
While, according to Global Betting and Gaming Consultants, mobile gaming only represents 1 per cent of all gambling world wide, it is a sector undergoing rapid growth. The two consultancies predict that by 2013 mobile gambling will account for 11 per cent of all gambling away from betting shops, racetracks and casinos, up from 9 per cent this year and 7.2 per cent in 2007.
Last month, online gaming company Betfair publicised a 78 per cent growth of mobile revenues in its annual accounts while Ladbrokes, the betting company, also reported a large increase of bets placed via mobile devices.
William Hill's potential bid for Probability is one of the first transactions that has been announced under new rules by the Takeover Panel in force since 19 September 2011. The new rules compel companies to publicise any approach by a potential purchaser that has not been unequivocally rejected.
The announcement of the preliminary talks starts an offer period for William Hill, which means that the betting company will have to announce whether it will make an formal offer for Probability by 5pm on 17 October 2011. If William Hill decides not to make a formal bid for Probability, it will be barred from a new offer for Probability for six months from the date on which it announces its intention not to make a bid.
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