CVC Capital Partners pays up to GBP 800 million for asset
According to reports in Thursday's Telegraph newspaper in the UK, major broadcast company Sky has sold a majority stake in its betting business SkyBet to CVC Capital Partners, a British private equity firm, for up to GBP 800 million.
CVC Capital Partners made an unsuccessful attempt to acquire Betfair for GBP 1 billion last year (see previous InfoPowa report).
Sky's decision is believed to be motivated by a desire to focus on core pay-TV operations.
The Telegraph report quotes the broadcaster as saying that the sale will "crystallise value" and enable Sky to focus on the "significant opportunity for growth in pay TV across the five markets in which it operates."
Last month the company dropped "British" and "Broadcasting" and adopted Sky as its official name after it completed the GBP 7 billion takeover of Sky Deutschland and Sky Italia.
The parent Sky company will retain a 20 percent interest in SkyBet, along with ongoing broad representation as well as a long-term brand licence agreement.
Under the terms of the Sky Bet deal, Sky will receive GBP 600 million in cash first and a further GBP 120 million at a later stage.
The new independent company will continue to be run by the existing leadership team, with Richard Flint assuming the role of CEO.
Flint commented Thursday: "Over the last 7 years, Sky Betting and Gaming has grown rapidly to become one of the UK's leading online betting and gaming operators, achieved through the hard work of our employees and valuable support of Sky and Sky Sports.
"Looking forward, we have exciting growth opportunities, both in the UK and internationally.
"Today's transaction brings in CVC as a new majority investor who will support us in the next phase of our development, and retains the benefits of Sky's and Sky Sports' continuing involvement.
"CVC brings a broad international network, has an excellent track record of building businesses, as well as valuable experience in the betting & gaming sector, through previous investments in companies such as William Hill and IG Group."
Online Casino News Courtesy of Infopowa