LONDON: Sky European pay-TV group sells a controlling stake in Sky Bet to Cablevision Systems Corporation (CVC) Capital Partners in a deal which values the online betting business at 800 million pounds ($1.3 billion).
In Britain, Italy, Germany, Austria and Ireland Sky has 20 million customers would receive 600 million pounds in cash at completion and would retain a stake of around 20 percent in Sky Bet.
Further Sky said the sale would enable it to focus on the growth areas within its pay-TV business, where it has recently expanded into continental Europe with the purchase of Sky Italia and 90 percent of Sky Deutschland.
On revenues of 182 million pounds Sky Bet, the title sponsor of English soccer’s Football League, generated profit before tax of 50 million pounds in the year to June 30, 2014.
Sky also receives an extra 120 million pounds under the terms of a vendor loan and additional value based on private equity group CVC receiving a certain return on its investment.
William Hill previously owned bookmaker CVC Partners said Sky Bet’s management and staff would remain with the company, which will maintain its close ties to the Sky Sports network.
In Formula One motor racing CVC is a major shareholder, tried to buy online betting exchange Betfair last year but a proposed billion pound deal foundered over price and strategy.
