Sky Sells Majority Stake In Sky Bet
Satellite broadcaster Sky has sold a bulk 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 bought by private equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the deal is completed next year and will maintain a 20% stake.
Betting and video gaming was not related to as part of Sky's core service, a spokesperson said.
The sale would allow it to focus on the "substantial growth chances" in pay-tv in the five European markets it ran in, Sky stated.
The business just recently completed 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 "significant value" for shareholders.
Shares in Sky increased 1.2% to 938p in London, valuing the business at simply over ₤ 16bn. The stock has actually increased by nearly 20% in the past 12 months.
'Successful asset'
Analysts at Citi said Sky could utilize a few of the earnings to buy out the remaining minority shareholders in Germany, adding: "We think a sale of Sky Bet is a reasonable strategic move."
Investec described Sky Bet is a "non-core however highly successful property" and stated earnings ought to help the company pay down financial obligation, which was expected to be ₤ 6.3 bn for the 2015 fiscal year.
CVC, which has actually had an interest in the betting and gaming sector with stakes in business such as William Hill and IG Group, shopped Betfair last year in a ₤ 1bn deal. However, the two business failed to concur on price.
The personal equity group controls the Formula One motor racing business.
Sky Bet will remain in Leeds with all staff transferring to the new entity.
Satellite broadcaster Sky has sold a bulk 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 bought by private equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the deal is completed next year and will maintain a 20% stake.
Betting and video gaming was not related to as part of Sky's core service, a spokesperson said.
The sale would allow it to focus on the "substantial growth chances" in pay-tv in the five European markets it ran in, Sky stated.
The business just recently completed 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 "significant value" for shareholders.
Shares in Sky increased 1.2% to 938p in London, valuing the business at simply over ₤ 16bn. The stock has actually increased by nearly 20% in the past 12 months.
'Successful asset'
Analysts at Citi said Sky could utilize a few of the earnings to buy out the remaining minority shareholders in Germany, adding: "We think a sale of Sky Bet is a reasonable strategic move."
Investec described Sky Bet is a "non-core however highly successful property" and stated earnings ought to help the company pay down financial obligation, which was expected to be ₤ 6.3 bn for the 2015 fiscal year.
CVC, which has actually had an interest in the betting and gaming sector with stakes in business such as William Hill and IG Group, shopped Betfair last year in a ₤ 1bn deal. However, the two business failed to concur on price.
The personal equity group controls the Formula One motor racing business.
Sky Bet will remain in Leeds with all staff transferring to the new entity.