Sky Sells Majority Stake In Sky Bet
Satellite broadcaster Sky has sold a majority stake in Sky Bet, valuing the betting operation at ₤ 800m.
The Leeds-based operation, that includes websites 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 offer is completed next year and will keep a 20% stake.
Betting and video gaming was not considered as part of Sky's core business, a representative said.
The sale would allow it to focus on the "significant growth chances" in pay television in the 5 European markets it ran in, Sky said.
The business recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its customer base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
Jeremy Darroch, primary executive of Sky, said the sale understood "considerable value" for shareholders.
Shares in Sky increased 1.2% to 938p in London, valuing the company at just over ₤ 16bn. The stock has risen by almost 20% in the previous 12 months.
'Successful possession'
Analysts at Citi said Sky might utilize some of the proceeds to buy out the remaining minority investors in Germany, including: "We think a sale of Sky Bet is a reasonable strategic relocation."
Investec described Sky Bet is a "non-core but extremely effective asset" and said earnings must assist the company pay for financial obligation, which was anticipated to be ₤ 6.3 bn for the 2015 financial year.
CVC, which has had an interest in the betting and video gaming sector with stakes in companies such as William Hill and IG Group, tried to purchase Betfair last year in a ₤ 1bn offer. However, the two companies failed to settle on price.
The private equity group controls the Formula One motor racing organization.
Satellite broadcaster Sky has sold a majority stake in Sky Bet, valuing the betting operation at ₤ 800m.
The Leeds-based operation, that includes websites 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 offer is completed next year and will keep a 20% stake.
Betting and video gaming was not considered as part of Sky's core business, a representative said.
The sale would allow it to focus on the "significant growth chances" in pay television in the 5 European markets it ran in, Sky said.
The business recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its customer base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
Jeremy Darroch, primary executive of Sky, said the sale understood "considerable value" for shareholders.
Shares in Sky increased 1.2% to 938p in London, valuing the company at just over ₤ 16bn. The stock has risen by almost 20% in the previous 12 months.
'Successful possession'
Analysts at Citi said Sky might utilize some of the proceeds to buy out the remaining minority investors in Germany, including: "We think a sale of Sky Bet is a reasonable strategic relocation."
Investec described Sky Bet is a "non-core but extremely effective asset" and said earnings must assist the company pay for financial obligation, which was anticipated to be ₤ 6.3 bn for the 2015 financial year.
CVC, which has had an interest in the betting and video gaming sector with stakes in companies such as William Hill and IG Group, tried to purchase Betfair last year in a ₤ 1bn offer. However, the two companies failed to settle on price.
The private equity group controls the Formula One motor racing organization.