Sky Sells Majority Stake In Sky Bet

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Satellite broadcaster Sky has sold a majority stake in Sky Bet, valuing the gambling operation at ₤ 800m.

The Leeds-based operation, that includes sites such as Sky Vegas and Sky Bingo, is being purchased by private equity group CVC Capital Partners., external

Sky will be paid ₤ 600m when the deal is finished next year and will keep a 20% stake.
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Betting and gaming was not considered part of Sky's core business, a spokesperson said.

The sale would allow it to concentrate on the yohaig code "significant growth chances" in pay-tv in the 5 European markets it ran in, Sky said.

The business just recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its client base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.

Jeremy Darroch, president of Sky, said the sale understood "substantial worth" for shareholders.
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Shares in Sky rose 1.2% to 938p in London, valuing the company at just over ₤ 16bn. The stock has actually risen by almost 20% in the previous 12 months.

'Successful asset'

Analysts at Citi said Sky might use a few of the earnings to buy out the staying minority shareholders in Germany, including: "We believe a sale of Sky Bet is a reasonable tactical move."

Investec explained Sky Bet is a "non-core however highly successful possession" and said profits need to assist the company pay down financial obligation, which was to be ₤ 6.3 bn for the 2015 monetary year.
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CVC, which has had an interest in the wagering and gaming sector with stakes in business such as William Hill and IG Group, shopped Betfair in 2015 in a ₤ 1bn deal. However, the 2 companies stopped working to settle on price.
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The private equity group controls the Formula One motor racing service.
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Sky Bet will remain in Leeds with all staff relocating to the yohaig code new entity.
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The organization produced net earnings of ₤ 182m in the yohaig code year to June 30 and pre-tax earnings of ₤ 50m.
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Sky has struck a long-lasting brand licence arrangement with Sky Bet.

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