FS Gaming Investments, an investment group composed of former gambling industry executives, has acquired a 6.5 per cent stake in 888.
The investment group is led by the former GVC Holdings leadership duo of Kenneth Alexander and Lee Feldman, and includes the support of ex-Betfair executive Stephen Morana and igaming investor Daniel Shribman.
An RNS filing also noted that DAZN CEO Shay Segev allowed his two per cent share in 888 to be controlled by the investment group to help facilitate the total 6.5 per cent share acquisition.
An 888 spokesperson told Reuters: “We welcome the investment of FS Gaming, which we believe reflects the significant value-creation potential in our business.
“We look forward to updating and engaging with all our shareholders as we continue to deliver against our clear strategic and operational priorities.”
888 had a difficult 2022 following compliance issues and executive movements with the suspension of VIP customers in the Middle East following safer gambling policy failures, which led to the departure of former CEO Itai Pazner.
Revenue for the group improved year-over-year to £1.2bn (2021: £712.3m) when considering the consolidation of Wiliam Hill revenues across H2 2022. However, on a pro forma basis, group revenue declined to £1.85bn (2021: £1.9bn).
In the short term, the group and 888 Chair Lord Mendelsohn will look to hire a new CEO to assist with their long-term focus of reducing net debt, which stood at £1.73bn at the end of the year.