Paddy Power/Betfair merger – Where did that come from??

 

It is the season of takeovers and mergers within the gaming industry.

Like most industries, major news is normally reported on and discussed before anything official is announced.

A possible merger between Ladbrokes and Coral and 2 takeover bids for BWin from GVC and 888 were rumoured before official statements were made by the companies involved.

This week though, it was announced that 2 giants of the industry, Betfair and Paddy Power have reached an agreement in principal to merge.

It came totally out of the blue and if it goes through will create one of the world’s largest public online betting and gaming companies by revenue. Betfair Chief Executive Officer, Breon Corcoran, formally of Paddy Power, commented on the potential merger saying:

“The proposed merger with Paddy Power is hugely exciting. It would create a truly global sports betting group with unmatched products and talent, and significantly enhanced scale. The combined business would be one of the world’s largest online sports betting operators, with revenues totalling more than £1 billion.”

Shares in both companies unsurprisingly rose, Betfair’s by 17% in early exchanges, whilst shares in the likes of Ladbrokes and William Hill fell by more than 3% as it’s investors worry about the impact.

Whilst there is a way to go until these 3 deals are rubber stamped and completed, it seems that times are changing within the online gaming industry. We await to see the exact impact this will have for players and competitors alike.