Sky has agreed to sell its online betting and gaming business Sky Bet to private equity house CVC Capital Partners, "bolstering its financial firepower amid heightened competition with rival BT," according to Mance, Nuttall & Barrett of the FINANCIAL TIMES. The pay-TV operator will receive cash of £600M ($943M) for an 80% stake in the gaming business and "further deferred and contingent consideration" of up to £120M ($188M). The deal values Sky Bet at £800M ($1.3B), 15 times its most recent earnings "before interest, tax, depreciation and amortisation." That is more than the multiple of gambling rival Betfair, "which CVC unsuccessfully sought to acquire last year." Berenberg analyst Sarah Simon said, "We are surprised. It was one of the fastest growing bits within Sky. What are they going to do with the money?" (FT, 12/4). In London, Ashley Armstrong wrote the broadcaster said that the sale to private equity firm CVC Capital Partners will "crystallise value" and enable Sky to focus on the "significant opportunity for growth in pay TV across the five markets in which it operates." The deal "must be cleared by regulators" in the U.K. and Ireland and is expected to close in the first quarter of '15 (TELEGRAPH, 12/4). REUTERS' Kate Holton wrote CVC Partners, which has previously owned bookmaker William Hill, said that "Sky Bet's management and staff would remain with the company, which will maintain its close ties to the Sky Sports network." It said, "The partnership between CVC and Sky will provide a strong platform to support SkyBet's ongoing success at this exciting point in its development." Sky Bet is "the title sponsor" of England's Football League (REUTERS, 12/4). BLOOMBERG's Kristen Schweizer wrote following acquisitions in Italy and Germany this year, Sky "is putting together a broader plan to harmonize cross-border TV production and bidding to air sports matches and will have more heft when negotiating advertising deals as well as the rights to air TV programs" (BLOOMBERG, 12/4).
