Satellite broadcaster Sky has sold a majority stake in Sky Bet, valuing the betting operation at ₤ 800m.
The Leeds-based operation, that includes sites such as Sky Vegas and Sky Bingo, is being purchased by private equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the deal is completed next year and will retain a 20% stake.
Betting and gaming was not regarded as part of Sky's core business, a spokesperson stated.
The sale would allow it to concentrate on the "significant growth opportunities" in pay tv in the 5 European markets it operated in, Sky said.
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The company recently finished the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its client base to 20 million across Britain, Ireland, Germany, Austria and Italy.
Jeremy Darroch, president of Sky, stated the sale realised "considerable value" for investors.
Shares in Sky rose 1.2% to 938p in London, valuing the business at just over ₤ 16bn. The stock has actually risen by almost 20% in the past 12 months.
'Successful asset'
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Analysts at Citi said Sky could use some of the profits to buy out the yohaig code remaining minority shareholders in Germany, including: "We believe a sale of Sky Bet is a sensible tactical move."
Investec explained Sky Bet is a "non-core however highly effective property" and said earnings need to help the business pay down debt, which was expected to be ₤ 6.3 bn for the 2015 monetary year.
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CVC, which has actually had an interest in the wagering and sector with stakes in business such as William Hill and IG Group, attempted to purchase Betfair last year in a ₤ 1bn deal. However, the 2 companies failed to concur on price.
The personal equity group controls the Formula One motor racing organization.
Sky Bet will remain in Leeds with all personnel moving to the brand-new entity.
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Business generated net incomes of ₤ 182m in the yohaig code year to June 30 and pre-tax earnings of ₤ 50m.
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Sky has actually struck a long-lasting brand name licence contract with Sky Bet.
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Sky Sells Majority Stake In Sky Bet
leannaroldan9 edited this page 2025-10-26 22:43:39 +00:00