Bet365 sports betting company potentially facing a mega-billion dollar acquisition by the Coates family.
Going, Going... Bet365: The Coates Family Eyeing a Blockbuster Deal
Billion-Dollar Offer on the Table for Online Betting Giant Bet365Owner of the worldwide sports betting behemoth, the Coates family, might be set to cash in with a potential sale
Things are heating up in the world of sports betting as the Coates family, owners of gambling titan Bet365, are reportedly in talks with U.S. investment banks and advisors about selling their stake in the company. The rumored valuation? A cool $10-$12 billion!
The British powerhouse, famously led by Denise Coates, has been reportedly evaluating their options such as an Initial Public Offering (IPO) on a U.S. exchange or a partial sale to private equity investors.
While a decision hasn't been finalized, sources suggest that the process is well underway. Apart from the classic routes of an IPO or a partial sale, a possible spin-off of specific business units is also on the table, with certain business areas carved out to operate independently.
Strategic Moves and International Expansion Galore
According to market experts, both strategic and personal factors might be behind Denise Coates' decision. The 57-year-old, who owns 58% of the shares and could rake in around $5 billion in the event of a sale, has made some significant moves lately.
Denise recently made waves by pulling Bet365 out of China—an act likely intended to make the company more attractive to U.S. investors amid potential IPO plans. Additionally, she handed over control of family-owned football club Stoke City FC to her brother John.
From a small office container in Stoke-on-Trent, Bet365 exploded onto the global betting scene in just two decades, becoming one of the world's largest online betting providers. Now, the company could be on the brink of its next big step: a blockbuster sale or IPO.
Major figures and facts at a glance:
- Establishment: 2000 by Denise Coates in Stoke-on-Trent, UK
- Ownership: Denise Coates, with 58% of the shares, and the remaining shares in the hands of the Coates family
- Workforce: Over 7,000 employees worldwide
- International footprint: Operating in over 20 jurisdictions, including Germany, Spain, Argentina, and 13 U.S. states
- Sponsorship: Stoke City FC and UEFA Champions League global partner since 2024
- Innovation: Pioneer in live betting (In-Play)
- Financial Watchdog Run-ins: Fined £582,120 (around $683,000) by the UK Gambling Commission in April 2024 for breaches of anti-money laundering provisions
These moves could hint at preparations for a deal with U.S. investors. The withdrawal from the Chinese market, in particular, could indicate a desire to avoid potential risks that might cause problems during an IPO in the U.S.
Moreover, Bet365 has recently expanded into regulated markets such as the U.S., Brazil, and Peru. The company currently operates in 13 U.S. states and has recently formed partnerships, such as with the St. Louis Cardinals baseball team in Missouri.
Financially Solid but Ready to Cash In
Financially, Bet365 is doing just fine. For the financial year ending March 2024, the company reported a 9% increase in revenue to £3.72 billion (around $4.36 billion) and a pre-tax profit of £626.6 million (around $735 million)—impressive numbers considering the company posted a loss the previous year.
An IPO in the U.S. would make Bet365 the world's largest listing by a gambling company, marking online gambling's arrival in the mainstream. Such an IPO could set a new valuation benchmark for competitors like Flutter and Entain, influencing the market value of similar firms.
However, an IPO would also significantly increase the company's disclosure requirements, a major departure from its previously low-key culture.
Contemplating the Next Step
Despite these prospects, it remains unclear whether a sale will ultimately take place. The Coates family, as the sole owner, has no need to rush and can take its time to find the best possible deal. However, the increasing market maturity and increasing competition, especially from U.S. giants like DraftKings, suggest that Bet365 could be prepping for its next phase of expansion under new management.
Analysts have been hammering on about Bet365 being the ideal investment for years. Despite some claiming that the company might be nearing its heyday, it still ranks as one of the best online sports betting companies globally.
Rumors are swirling that personal considerations within the Coates family could also play a role: Denise Coates' 60th birthday is fast approaching, making this the perfect time to pass the torch to new hands after two decades of rapid growth. According to industry analyst Paul Leyland, Coates might have chosen not to let her company languish, but to help it achieve its next stage of development.
Industry analysts will be closely watching Bet365's next moves. The game is afoot!
- What's the latest buzz in the sports betting world regarding Bet365? It's been reported that the Coates family, owners of the company, are considering a potential sports-related move through a sale worth $10-$12 billion.
- If the sale goes through, Denise Coates, the 57-year-old owner, could invest the money she'd receive into various sports-related ventures, given her interest in the sector.
