Thursday December 04,2014 : SKY SELLS BETTING BUSINESS TO PRIVATE EQUITY FIRM
CVC Capital Partners pays up to GBP 800 million for asset.
According to reports in Thursday's Telegraph newspaper in the UK, major broadcast company Sky has sold a majority stake in its betting business SkyBet to CVC Capital Partners, a British private equity firm, for up to GBP 800 million.
Sky's decision is believed to be motivated by a desire to focus on core pay-TV operations.
The Telegraph report quotes the broadcaster as saying that the sale 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."
Last month the company dropped "British" and "Broadcasting" and adopted Sky as its official name after it completed the GBP 7 billion takeover of Sky Deutschland and Sky Italia.
The parent Sky company will retain a 20 percent interest in SkyBet, along with ongoing broad representation as well as a long-term brand licence agreement.
Under the terms of the Sky Bet deal, Sky will receive GBP 600 million in cash first and a further GBP 120 million at a later stage.