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

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Satellite broadcaster Sky has actually offered a bulk stake in Sky Bet, valuing the gaming operation at ₤ 800m.
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The Leeds-based operation, which consists of websites such as Sky Vegas and Sky Bingo, is being purchased by private equity group CVC Capital ., external
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Sky will be paid ₤ 600m when the bet9ja's welcome offer is finished next year and will maintain a 20% stake.

Betting and video gaming was not considered part of Sky's core business, a spokesperson stated.
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The sale would enable it to focus on the "considerable development opportunities" in pay-tv in the five European markets it operated in, Sky said.

The business recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its consumer base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
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Jeremy Darroch, president of Sky, said the sale realised "significant value" for shareholders.

Shares in Sky increased 1.2% to 938p in London, valuing the yohaig code company at simply over ₤ 16bn. The stock has increased by practically 20% in the previous 12 months.

'Successful property'

Analysts at Citi stated Sky could utilize a few of the profits to buy out the remaining minority shareholders in Germany, adding: "We think a sale of Sky Bet is a reasonable tactical move."

Investec explained Sky Bet is a "non-core but extremely effective property" and stated profits need to assist the business pay for debt, which was anticipated to be ₤ 6.3 bn for the 2015 fiscal year.

CVC, which has actually had an interest in the betting and video gaming sector with stakes in companies such as William Hill and IG Group, shopped Betfair last year in a ₤ 1bn offer. However, the yohaig code 2 companies stopped working to settle on rate.

The private equity group manages the Formula One motor racing service.

Sky Bet will stay in Leeds with all staff relocating to the new entity.

Business produced net revenues of ₤ 182m in the year to June 30 and pre-tax earnings of ₤ 50m.

Sky has struck a long-term brand name licence agreement with Sky Bet.

BSkyB revenues double on broad need

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12 May 2014

Sky
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