Softbank Pays £355 Million for Stake in Betfair
The price tag on the 23 percent stake in private, unlisted British betting exchange Betfair that Japanese Internet and technology firm Softbank Corp. has acquired amounts to just over £355 million. The purchase values Betfair at about £1.54 billion, which is roughly 30 times its projected earnings for 2006 and 67 times its operating profit in 2005. The deal increases Betfair's net cash position from £80 million to £125 million, and £45 of the proceeds will be invested directly into the company via new shares. In addition to the 23 percent shareholding, Softbank has acquired an option to place an individual on Betfair's board of directors.
I-Gaming Stocks Surge on Fruitless Goodlatte Hearing
Online gambling companies experienced a surge in share prices Thursday following a U.S. House Judiciary subcommittee hearing on Rep. Goodlatte's prohibitory online gambling bill. During the hearing the bill took a lot of criticism for being unclear on the issue of remote horse race wagering exemptions as well as for other reasons, so much so that its chances of passing as is no longer seem viable. Among some of the I-gaming companies to rise Thursday are PartyGaming Plc (PRTY.L), which gained 12.4 percent; 888 Holdings Plc (888.L), which rose 11.3 percent; Sportingbet (SBT.L), which rose 9.5 percent; and BetonSports (BSS.L), which rose 5.2 percent.
Cherry Set to Divulge Split Plan to Shareholders
The Board of Directors of Swedish gaming company Cherryforetagen AB (CHERB.ST) will propose at the next shareholders meeting its plan for splitting the firm into three distinct and independent companies: Betsson, Net Entertainment and Cherry Casino. The board will propose that Cherry Casino be separated from the group in June 2006 and that the company's software development division, Net Entertainment, be separated during the fall of 2006. The splitting of the company requires the approval of major shareholders.
Intralot Wants Turkish Lottery after Privatization
AFX News reports that Greek lotteries and gaming company Intralot has stated an interest in jointly acquiring Turkish lottery Milli Pinyango, which is due for privatization in the second half of 2006, assuming that the necessary legal reforms are passed. British bookmaker Ladbrokes and a Malaysian company called Tanyong are expected to jointly participate in the bid with Intralot, and the price is expected to range from between 150 million euros to 300 million euros as an upfront fee, with an additional percentage fee being dependent upon annual sales. Ladbrokes and Intralot entered into a global strategic alliance in February 2005, and the two are already working together on a bid for the next U.K. National Lottery license.
Pine Ventures Acquires CheekyMoon, Lists on AIM
A company called Pine Ventures Plc announced last week that it had completed the acquisition of online gambling company CheekyMoon Ltd. for an initial consideration of 79,999,996 new ordinary shares. After the transaction the enlarged issued shared capital were admitted to trading on the Alternative Investment Market of the London Stock Exchange with ticker symbol CHKY on April 4. Shares closed at 3p on April 3, which gives the company a market capitalization of £8.9 million. Following the listing the company has also changed its name to Cheekymoon Entertainment Plc.