The Coates clan is contemplating a mega-million dollar transaction for sports wagering corporation Bet365.
Bet365 Sale or IPO Under Consideration by Coates Family
The venerable Coates family is exploring strategic options for their online sports betting giant, Bet365, potentially leading to a full or partial sale or an initial public offering (IPO) in the US market.
Bet365, a behemoth in the online gambling industry, is currently owned by the billionaire Coates family, who are contemplating their next move with the assistance of US investment banks and advisors. A $12 billion evaluation, should a sale occur, is reportedly on the table.
Talks are ongoing regarding an IPO on a US exchange or a partial sale to private equity investors, according to The Guardian. A strategic cleanup and expansion into international markets are also under discussion, considering both business and personal factors.
Denise Coates, CEO of Bet365 and holder of 58% of the shares, has recently taken several strategic steps, such as withdrawing Bet365 from China and transferring control of Stoke City FC to her brother John. These moves, according to market observers, may be an indication of the family's intention to prepare for a deal with US investors.
Bet365 evolved from an office container in Stoke-on-Trent to one of the largest online betting providers worldwide in just two decades. After a nine percent increase in revenue to £3.72 billion (around €4.36 billion) and a pre-tax profit of £626.6 million (around €735 million) for the fiscal year ending March 2024, the company finds itself in a strong financial position. A US IPO could position Bet365 as the largest gambling company listing globally, signaling the mainstream acceptance of online gambling.
Bet365's strategic departure from the Chinese market and increasing focus on US market expansion, including the Missouri baseball team partnership, reflect its commitment to growth in the US. However, it remains uncertain whether a sale will occur, as the Coates family, the sole owner, has no pressure to make a hasty decision. Nonetheless, the increasing market maturity and competitive pressure from US giants suggest that Bet365 may be poised to signal its next phase of development under new management.
There exists some speculation regarding personal considerations within the Coates family. Denise Coates, approaching 60, may choose to transfer the company to new hands after two decades of growth and success. Analysts view a sale or US listing as strategically compelling, given the high demand for gambling assets and the potential for increased investor interest in the market.
What could the potential next phase for Bet365 be if the Coates family decides to proceed with a sale or IPO in the US market? The sports betting giant, with a reported $12 billion evaluation, could see significant growth and investment in the sports industry.
