January 7, 2013 : LADBROKES IN ACQUISITION TALKS WITH BETDAQ
Consideration of GBP 30 million rumoured
The UK online and land gambling group Ladbrokes has confirmed that its acquisition talks with Irish businessman Dermot Desmond's Betdaq betting exchange are continuing.
Rumours circulating in the UK media suggest that a price of around GBP 30 million is on the table, but that has not been confirmed.
The Guardian and other British newspapers reported Monday that Ladbrokes could be just weeks away from acquiring the Global Betting Exchange, which trades as Betdaq.
In a statement on Monday, Ladbrokes revealed: "[We] enjoy a close commercial co-operation with Betdaq and can confirm discussions regarding a potential future acquisition. Negotiations are on-going, though at this stage there is no certainty that an agreement will be reached."
Desmond set up the exchange 13 years ago in Dublin as a rival to Betfair, but it has not managed to gain significant market share and is thought to be loss-making, according to media reports. Rival Betfair continues to dominate the sector with an estimated 90 percent share of the exchange market.
After the failure of his previous acquisition attempts with 888 and Sportingbet, Ladbrokes CEO Richard Glynn is reportedly keen to make the Betdaq deal stick, enabling the gambling company to offer its punters a one-stop shop.
Industry analysts are speculating that in the event of an acquisition, Ladbrokes would have to make a significant investment in marketing to make Betdaq effective and a contributor to profits, and reduce leakage to the competition.