sky-sells-majority-stake-in-sky-bet

Satellite broadcaster Sky has actually offered 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 bought by private equity group CVC Capital Partners., external

Sky will be paid ₤ 600m when the deal is completed next year and will keep a 20% stake.
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and gaming was not considered as part of Sky's core service, a representative said.

the yohaig code sale would allow it to concentrate on the "considerable development 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 client base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
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Jeremy Darroch, president of Sky, said the sale realised "substantial worth" for investors.
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Shares in Sky increased 1.2% to 938p in London, valuing the business at simply over ₤ 16bn. The stock has increased by nearly 20% in the previous 12 months.
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'Successful asset'

Analysts at Citi stated Sky could use a few of the profits to buy out the staying minority investors in Germany, including: "We believe a sale of Sky Bet is a practical tactical relocation."

Investec described Sky Bet is a "non-core but extremely successful asset" and said earnings must assist the business pay down financial obligation, which was expected to be ₤ 6.3 bn for the 2015 monetary year.
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CVC, which has had an interest in the betting and gaming sector with stakes in business such as William Hill and IG Group, shopped Betfair in 2015 in a ₤ 1bn deal. However, the two business stopped working to settle on rate.

The private equity group controls the Formula One motor racing service.
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Sky Bet will remain in Leeds with all staff moving to the new entity.
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Business generated net incomes of ₤ 182m in the year to June 30 and pre-tax profits of ₤ 50m.
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Sky has actually struck a long-lasting brand name licence agreement with Sky Bet.

BSkyB revenues double on broad need
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16 October 2014
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BSkyB bids to consolidate Sky Europe

12 May 2014

Sky