Source: Sharecast
The stake was disclosed in a filing after the market close on Tuesday and the investor group includes Lee Feldman, the former chairman of GVC (now Entain), and former chief executive Kenny Alexander.
According to a Bloomberg report, the investor group could propose a change of leadership and strategy.
At 0810 BST, the shares were up 17% at 93.64p.
Victoria Scholar, head of investment at Interactive Investor, said: "This could mark the beginning of significant changes for 888 including the potential for a C-suite and broader strategic shake-up. Even after this week’s surge, shares in 888 have more than halved in value over a one-year period, in stark contrast to Flutter which is up by more than 70%. This is providing a chance for opportunistic investors to strike while the iron is hot, making the most of its depressed share price."
She added: "The consortium provides a vote of confidence in the group and arguably could mark the beginning of a more bullish phase for the stock."
Jefferies, which rates the shares at 'buy', said in a research note: "We read the investment as a positive endorsement of the 888/William Hill integration opportunity, and opportunistic given 888's low valuation.
"We have previously commented that the 888/WMH deal seems highly similar to the highly successful integration of GVC and bwin, familiar ground for several members of this new shareholder grouping."
