Sky Sells Majority Stake In Sky Bet
Satellite broadcaster Sky has sold a bulk stake in Sky Bet, valuing the gaming operation at ₤ 800m.
The Leeds-based operation, which includes sites such as Sky Vegas and Sky Bingo, is being purchased by personal equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the offer is completed next year and will maintain a 20% stake.
Betting and video gaming was not considered as part of Sky's core service, a spokesperson stated.
The sale would permit it to concentrate on the "substantial growth chances" in pay-tv in the five European markets it operated in, Sky stated.
The company just 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 worth" for shareholders.
Shares in Sky rose 1.2% to 938p in London, valuing the business at simply over ₤ 16bn. The stock has actually risen by almost 20% in the past 12 months.
'Successful asset'
Analysts at Citi said Sky could use some of the earnings to purchase out the remaining minority investors in Germany, adding: "We believe a sale of Sky Bet is a sensible strategic move."
Investec explained Sky Bet is a "non-core but highly effective possession" and said proceeds need to assist the company pay down financial obligation, which was expected to be ₤ 6.3 bn for the 2015 financial year.
CVC, which has actually had an interest in the betting and video gaming sector with stakes in business such as William Hill and IG Group, attempted to buy Betfair last year in a ₤ 1bn deal. However, the two business stopped working to settle on cost.
The private equity group controls the Formula One motor racing organization.
Satellite broadcaster Sky has sold a bulk stake in Sky Bet, valuing the gaming operation at ₤ 800m.
The Leeds-based operation, which includes sites such as Sky Vegas and Sky Bingo, is being purchased by personal equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the offer is completed next year and will maintain a 20% stake.
Betting and video gaming was not considered as part of Sky's core service, a spokesperson stated.
The sale would permit it to concentrate on the "substantial growth chances" in pay-tv in the five European markets it operated in, Sky stated.
The company just 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 worth" for shareholders.
Shares in Sky rose 1.2% to 938p in London, valuing the business at simply over ₤ 16bn. The stock has actually risen by almost 20% in the past 12 months.
'Successful asset'
Analysts at Citi said Sky could use some of the earnings to purchase out the remaining minority investors in Germany, adding: "We believe a sale of Sky Bet is a sensible strategic move."
Investec explained Sky Bet is a "non-core but highly effective possession" and said proceeds need to assist the company pay down financial obligation, which was expected to be ₤ 6.3 bn for the 2015 financial year.
CVC, which has actually had an interest in the betting and video gaming sector with stakes in business such as William Hill and IG Group, attempted to buy Betfair last year in a ₤ 1bn deal. However, the two business stopped working to settle on cost.
The private equity group controls the Formula One motor racing organization.