Thu, 04 Dec 2014 | DIVISION SALE
Sky has sold a majority stake in its sports betting business Sky Bet, which has been valued at £800 million.
The satellite broadcaster founded Sky Bet in 2001, which is to become 80 per cent owned by funds advised by CVC Capital Partners, when the deal is finalised in early 2015.
The sale will give Sky the head space to hone in on the ‘significant opportunity’ for growth in pay TV in the European markets it already has a foothold in.
Retaining a 20 per cent portion of Sky Bet, Sky will still have an influence on the betting and gaming business and has also kick-started a long-term licence agreement with Sky Bet.
Sky Bet is to stay in Leeds, with staff to move to the new entity. It made net revenues of £182 million and profits before tax of £50 million for the year to June.
Its soon-to-be owner CVC is not new to the betting and gaming arena, having made past investments in companies the likes of William Hill and IG Group.
With the disposal of Sky Bet in mind, there has been speculation about Sky’s intentions for the future being a move towards mobile. Broker Citigroup told This is Money it would be likely for "many investors and commentators to suppose that the sale of Sky Bet may be part of a potential re-orientation toward mobile, given recent developments in the UK triple-/quad-play space".
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