Betfair Buys Horse Racing Net, Betting Platform TVG For $50M
Betfair yesterday purchased horse racing network TVG from Macrovision Solutions for $50M, taking a "huge stride into the American racing and betting markets," according to Greg Wood of the Manchester GUARDIAN. TVG covers racing "from 70 tracks in 16 states, including the major racing centres of Kentucky, California and New York." Betfair currently has no plans to "introduce its exchange model of betting into the American market," but the company will "expect to use its cutting-edge betting technology to improve the pari-mutuel service to TVG clients." The acquisition may also give Betfair a "significant head-start on its competitors if, or when, current regulation is eased" (Manchester GUARDIAN, 1/28). Betfair CEO David Yu: "We have always been attracted by the operating strength of TVG together with its conservative and prudent regulatory approach. Its values are very much aligned with those of Betfair." The THOROUGHBRED TIMES' Frank Angst reported Macrovision "began looking for a buyer for TVG shortly after purchasing" TVG's former parent company, Gemstar-TV Guide, in '08 (THOROUGHBREDTIMES.com, 1/27).
LEADING THE PACK: In Louisville, Gregory Hall notes TVG is "unique in that it is both a cable television operation and an account-wagering platform," and the acquisition "immediately makes Betfair a major player in the American thoroughbred industry, owning what is currently the largest U.S. account-wagering company that can take bets on its Web site and by telephone." TVG currently is in 30.6 million HHs in 16 states and handled about $480M in bets in '07. The net also is in "more homes than its competitor," HRTV, which is co-owned by Churchill Downs Inc. (CDI) and Magna Entertainment. The challenge for Betfair "could be to grow TVG amid some lost revenue streams while bearing the cost of operating a television network." Meanwhile, Hall notes "rampant industry speculation had focused" on CDI as a "leading potential buyer for TVG, the nation's first horse-racing channel." But CDI officials "never confirmed that prospect" (Louisville COURIER-JOURNAL, 1/28).
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