Sky, the leading satellite TV provider in the UK, announced today that they have sold their majority stake in Sky Bet. Sky Bet was one of the leading online bookmakers in the UK, having a solid poker and casino product as well which was enjoyed by thousands of players on a daily basis.
Sky agreed to sell the majority stake to CVC Capital Partners, in a deal where all of Sky Bet is valued at £800 million. The agreement means that Sky will receive £600 million in cash for the sale of Sky Bet and may receive upwards of £120 million extra, depending on different results.
The value of Sky Bet was determined by taking the annual EBITDA and multiply by 15. Sky will continue to own 20% stake in Sky Bet and continue to have board representation. Furthermore Sky has agreed to a branding agreement with Sky Bet, to ensure that the site can continue to use the Sky brand.
Jeremy Darroch, Group Chief Executive of Sky, said: "In the last ten years, we have successfully grown Sky Bet from a start-up to one of the leading online betting and gaming companies in the UK. This transaction will allow us to focus further on the substantial growth opportunities in our core international pay TV business while realising significant value for our shareholders."