It has been confirmed by Ladbrokes that talks are on the table between the European betting shop owner and one of the most popular online casinos and poker rooms on the Web, 888.com. Although figures indicative of a buyout offering have not been confirmed, the potential of a bid is certainly a reality at this time. The confirmation came when a Ladbrokes spokesperson announced earlier this week they were in preliminary stages of  "reviewing a possible transaction with 888". The key word here is "possible", for there is no guarantee at this time whether or not a proposal will even be made.

Both companies, who are listed on the London Stock Exchange, saw their shares rise when the news was confirmed. 888, who has lost over half of its revenue due to shutting its doors to U.S. online casino and poker players, is currently valued at $758 million. Ladbrokes, which operates an all-in-one online betting site offering poker, casino games, casual gaming and sports betting, in addition to over 2,200 land-based betting shops in the UK, Ireland and Belgium, has a current value of approximately £2.5 billion (US$4.75 billion).

It is certain that 888 is looking to find a buyer, for earlier last week it was reported that PartyGaming was showing interest in online casino and poker room. However, that deal obviously soured when PartyGaming began showing serious interest in Austrian online sports betting conglomerate, Bwin, who, incidentally, has denied. Some gambling analysts are predicting that offers from venture capitalists are highly likely and that a Ladbrokes buyout of 888 is highly preemptive.

However, there are several good reasons why Ladbrokes could be seriously considering a purchase. The first would be to acquire 888's highly rated proprietary online casino and poker software. The second could be to possibly use 888's knowledge of server based gaming to help implement server-based gambling machines in all of Ladbrokes land-based betting shops.