Bet365 Considering Possible Transfer of Ownership
Bet365, the colossal gambling empire, is rumored to be considering a sale worth a whopping £9 billion, as reported by The Guardian. Apparently, internal discussions have been held, weighing the options for a full sale, an IPO, or a partial sale of the company.
Sources claim that the company has been in talks with US advisers and Wall Street banks over the past few weeks. One possibility under consideration is a partial sale of Bet365 to a private equity firm, allowing the Coates family to keep a stake in their family business. Another approach being floated is a listing on the US stock market.
Gambling Capital Managing Director Ed Birkin hinted at a potential move, stating that if the speculation of a Bet365 sale had occurred a year ago, it might have been a shock. However, recent actions by the group, such as the exit from the Chinese sports betting market and the pivot to regulated markets, have brought M&A considerations to the forefront.
An industry M&A advisor expressed that while this proposal tends to surface every now and then, they do not see a clear reason why the Coates family would wish to bring the business to an IPO. Moreover, Bet365 would have to go through a very public disclosure process, given its private nature throughout its existence, which could potentially be a painful transition.
If a deal were to happen, DraftKings could potentially be a buyer, but the stars would need to align for this to be a favorable deal. As of now, DraftKings' market capitalization is listed at $16.64 billion on Seeking Alpha.
Bet365 returned to profit in their recent earnings, reporting a £626.6 million pre-tax profit (2024) and £3.72 billion in revenue. However, Regulus Partners noted several factors that could impact Bet365's growth plans, such as competitor in-play product offerings catching up to Bet365's and a decline of VIP and grey market takings in mature EU markets.
In conclusion, it seems the Coates family is strategically considering several options, each with its own advantages and disadvantages. The decision could heavily influence the future of Bet365 and the gambling industry as a whole.
- Reportedly, Bet365, a renowned gambling empire, is deliberating over a potential sale worth £9 billion, considering options such as a full sale, an IPO, or a partial sale to a private equity firm.
- One possibility under consideration is a partial sale of Bet365 to a private equity firm, allowing the Coates family to retain their stake in their family business, while another approach being floated is a listing on the US stock market.
- If Bet365 were to engage in an IPO, it would face a rigorous disclosure process, given its private nature, as it has not previously disclosed such information publicly. Currently, DraftKings, with a market capitalization of $16.64 billion, might be a potential buyer, though the circumstances for such a deal would need to align favorably.
