Paddy Power Owners to Snap up the Stars Group

By Simon Wright, Last updated Mar 1, 2021

Flutter Entertainment plc, the publicly listed company behind Paddy Power and Betfair, have reached a deal this week to hoover up the Stars Group, the owners and operators of Sky Bet, in a deal that is valued at £10bn.

The deal which has been agreed, will see Flutter Entertainment on paper become the largest online betting company in the world and will further enhance the company’s chances of a big breakthrough in the opening up US marketplace.

Investors have given the green light to the takeover, which will see Flutter Entertainment shareholders control 55% ownership of the combined group, which between them accrued in excess of £3.8bn in revenues last year.

Furthermore once the deal has been completed, it is reported that the company will also have a commercial tie-in with Rupert Murdoch’s US Broadcaster, Fox Sports, with Fox in turn having the rights to acquire  18.5% of the US fantasy sports company  Fanduel, which Flutter Entertainment own.

Speaking about the proposed takeover, Flutter’s Chief Executive Officer, Peter Jackson, stated: “We believe the combination of Flutter and TSG will deliver substantial value for shareholders. We will have an exceptional portfolio of leading recreational brands and best-in-class products on industry-leading technology platforms.”

Flutter Entertainment’s Chairman, Gary McGann, added: “The combined group would also be a strong voice in the promotion of responsible gambling worldwide.”

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