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

Satellite broadcaster Sky has sold a bulk stake in Sky Bet, valuing the gambling operation at ₤ 800m.

The Leeds-based operation, which includes sites such as Sky Vegas and Sky Bingo, is being purchased by private equity group CVC Capital Partners., external

Sky will be paid ₤ 600m when the offer is completed next year and will keep a 20% stake.
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Betting and video gaming was not considered as part of Sky's core business, a said.
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The sale would enable it to concentrate on the "considerable development chances" in pay-tv in the 5 European markets it operated in, Sky said.

The business just recently finished the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its customer base to 20 million across Britain, Ireland, Germany, Austria and Italy.
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Jeremy Darroch, primary executive of Sky, stated the sale realised "significant value" for shareholders.
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Shares in Sky rose 1.2% to 938p in London, valuing the yohaig code business at simply over ₤ 16bn. The stock has increased by almost 20% in the previous 12 months.
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'Successful possession'

Analysts at Citi stated Sky could utilize some of the proceeds to buy out the yohaig code remaining minority shareholders in Germany, adding: "We believe a sale of Sky Bet is a sensible strategic relocation."

Investec described Sky Bet is a "non-core but highly successful possession" and stated earnings must assist the yohaig code business pay for debt, which was anticipated to be ₤ 6.3 bn for the 2015 financial year.

CVC, which has had an interest in the betting and gaming sector with stakes in companies such as William Hill and IG Group, shopped Betfair last year in a ₤ 1bn deal. However, the two business stopped working to settle on price.

The private equity group controls the yohaig code Formula One motor racing business.
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Sky Bet will remain in Leeds with all staff moving to the yohaig code brand-new entity.
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Business created net profits of ₤ 182m in the year to June 30 and pre-tax revenues of ₤ 50m.
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Sky has struck a long-term brand name licence contract with Sky Bet.
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