SKY SELLS MAJORITY STAKE IN SKY BET FOR £800 MILLION

Published on December 11, 2014 in Industry News

CVC Capital PartnersBritish satellite broadcaster Sky has sold the majority stake of its online gambling business, Sky Bet to CVC Capital Partners. 

Sites such as Sky Vegas Casino and Sky Bingo are included in the deal and are being bought by private equity group CVC Capital Partners for £800 million. The terms of the Sky Bet deal state that Sky will receive £600 million in cash first and a further £120 million at a later stage.

“We are delighted to have agreed to acquire a controlling stake in Sky Bet. The partnership between CVC and Sky will provide a strong platform to support Sky Bet’s ongoing success at this exciting point in its development,” said Rob Lucas, managing partner of CVC.

Sky, which has commented saying that betting and gaming are not part of their core business, will be retaining a 20% stake in Sky Bet (valued at £80 million) after the deal is completed in 2015.

The company recently spent £7 billion and acquired Sky Italia and a 90% stake in Sky Deutschland which brought their customer base to 20 million across Britain, Ireland, Germany, Austria and Italy.

Sky Bet was formed in 2001 and quickly became one of the UK’s largest online betting companies. They even stepped in to rescue the Football League after they failed to secure a sponsor. The sale of the majority stake in Sky Bet now releases Sky from trying to manage a betting company and focus on moving forward.

Sky’s chief executive Jeremy Darroch said, “In the last ten years, we have successfully grown Sky Bet from a start-up to one of the leading online betting and gaming companies in the UK. This transaction will allow us to focus further on the substantial growth opportunities in our core international pay-TV business while realising significant value for our shareholders.”