The board of directors at Betfair have rejected the £912 million offer from CVC, claiming the offer “undervalued” the company.
This is despite current shares valuing the company at approximately £840 million. Ironically, the shares saw one of the biggest jumps in their IPO history when CVC announced the offer, when they leapt up by an astonishing 35 points (4.4%).
The Betfair board summed up their rejection of the offer by stating they are “confident in the company’s strategy and growth prospects as it goes through an exciting stage”.
But of course, the question on everyone's lips is, will CVC make a counter offer?
Betfair are due to provide a further market update on 7th May 2013.
For the full details on the Betfair share position, visit The Telegraph.
Plus, you can read a full review of the Betfair Casino here.
Monday, 22 April 2013
Tuesday, 16 April 2013
Got Shares In Betfair?
There is a chance that Betfair’s troubled three years on the stock market could be coming to an end, if the latest reports in the financial media are to be believed. Private equity firm CVC is said to be considering a takeover offer though to be worth an estimated £800 million, which has caused Betfair’s usually floundering share price to rocket by 12% at its peak yesterday (as reported by the WSJ). Although there has been no confirmation by Betfair bosses or by CVC executives that a bid is in the offing, industry gossip has nevertheless leaked the news, seeing it as a rescue for a company, who, by their own admission has “lost their way”.
The current Chief Executive (the latest in a long line of CEOs trying to save the ailing brand), Breon Corcoran, who joined Betfair from Irish rival Paddy Power in early 2012, made the comment shortly after his appointment, and has since taken several drastic steps to try and reduce its shortcomings. These steps include pulling out of the troubled Greek and Cypriot markets and backing out of Germany due to on-going license problems. However, the share price has continued to tumble, nevertheless, with shares losing half their value since the flotation in late 2010.
But what does this mean for the Betfair shareholder? Shareholders were promised the moon when the company first floated – with an IPO valuation of 30 times historic earnings, they had to be. Huge, rapid expansion never materialised, and large chunks of the company have been sold off. Nevertheless, Betfair offers a unique betting platform and is a cash rich brand with lots of potential – providing they can turn around their fortune.
CVC could bring its own benefits to the brand however. The private equity firm owns the Formula One motor racing brand, as well as gym chain Virgin Active and the parent company of Madame Tussards. Plus, they already have experience in the gambling sector, having bought William Hill in 1999 and selling three years later.
If you have shares in Betfair, you are advised to stay up to date with the latest developments from both Betfair and CVC, and think carefully about your own interests. CVC cannot tender a bid unless all the shareholders agree, and the result must be right for the future of the firm. With 39% of Betfair shares still owned by four shareholders (including Richard Koch and Antony Ball) it would look like any potential bid for the company will see stiff negotiations, given the potential which still exists for the brand. If CVC are expecting Betfair to be an easy buy, they could be sadly mistaken.
If you are a casino player and have never played at Betfair before, take a read of an independant online casino review here to find out what all the fuss is about.
The current Chief Executive (the latest in a long line of CEOs trying to save the ailing brand), Breon Corcoran, who joined Betfair from Irish rival Paddy Power in early 2012, made the comment shortly after his appointment, and has since taken several drastic steps to try and reduce its shortcomings. These steps include pulling out of the troubled Greek and Cypriot markets and backing out of Germany due to on-going license problems. However, the share price has continued to tumble, nevertheless, with shares losing half their value since the flotation in late 2010.
But what does this mean for the Betfair shareholder? Shareholders were promised the moon when the company first floated – with an IPO valuation of 30 times historic earnings, they had to be. Huge, rapid expansion never materialised, and large chunks of the company have been sold off. Nevertheless, Betfair offers a unique betting platform and is a cash rich brand with lots of potential – providing they can turn around their fortune.
CVC could bring its own benefits to the brand however. The private equity firm owns the Formula One motor racing brand, as well as gym chain Virgin Active and the parent company of Madame Tussards. Plus, they already have experience in the gambling sector, having bought William Hill in 1999 and selling three years later.
If you have shares in Betfair, you are advised to stay up to date with the latest developments from both Betfair and CVC, and think carefully about your own interests. CVC cannot tender a bid unless all the shareholders agree, and the result must be right for the future of the firm. With 39% of Betfair shares still owned by four shareholders (including Richard Koch and Antony Ball) it would look like any potential bid for the company will see stiff negotiations, given the potential which still exists for the brand. If CVC are expecting Betfair to be an easy buy, they could be sadly mistaken.
If you are a casino player and have never played at Betfair before, take a read of an independant online casino review here to find out what all the fuss is about.
Wednesday, 3 April 2013
What Does the 80% Growth in UK Online Gambling Mean?
The online gambling industry has been abuzz with the news over the last few days stating that there has been an 80% increase in UK online gambling revenue since 2008. The figures show that the online gambling industry in the UK was worth an incredible £2 billion in 2012, compared to £1.27 billion in 2008. The increase has been put down to several factors; notably the increase in mobile gambling technology, the increase in online casinos and the wide variety of sports betting events which have taken place in the last several years.
Where Have The Increases Been Seen?
Sports Betting: Up 102%. Sports’ betting still dominates the industry, making up 44% of the overall revenue, an increase undoubtedly due to the advances in mobile phone and online betting platforms in the last two years.
Online Casinos: Up 79%. With the second biggest market share, the last several years has seen a flood of new online casinos, on computers, tablets and mobile phone devices.
Online Bingo: Up 155%. Worth 17% of the market, this huge increase will have been aided by the closure of a lot of land based bingo halls which has sent their players to online platforms.
Online Poker: Up 8%. A smaller increase, but this means that online poker contains 15% of the online gambling market in the UK, its smaller percentage possibly due to the game being harder to master.
Is This Good News For the UK?
Well, yes, for the UK online gambling industry it is excellent news, as it shows the industry is still developing and profiting. However, there have been estimates made by analysts that the UK Government has missed out on a whopping £2.1 billion in revenue since setting the tax rate at 15%, by effectively forcing UK based gaming companies out of the country.
Many companies, such as William Hill (who command a 15% share of the overall market), have since moved their operations offshore to take advantage of more flexible tax rates, which has meant a huge loss of revenue for the UK, in terms of corporation taxes, income tax and National Insurance payments to name but a few revenue sources. You can read an independant review of William Hill Casino here.
Ian Burke, the CEO of the Rank Group, has hit out at politicians in the UK who consistently take a derogatory view of the online casino and gambling industry, and was recently quoted as saying the politicians’ negative statements with regards to casinos are confusing for the public. Burke stated that the way people gamble has changed, and the heavy restrictions and responsibilities held by online gambling companies today mean people gamble responsibly and overall, simply for fun.
The poor relationship between the online gambling industry and UK government is now be being tackled head on, as there are currently discussing to reduce the tax rate to tempt back some of these big, profitable employers (see here for more). For the UK Government – who are currently under fire for public and social cuts being made – it seems that by adjusting their attitude to the strictly regulated world of online gambling they could easily boost their ailing coffers. By modernising their old fashioned attitudes to online gambling, and start seeing it as the thriving, profitable industry that it is, why shouldn’t the UK economy benefit from this amazing growth too?
Where Have The Increases Been Seen?
Sports Betting: Up 102%. Sports’ betting still dominates the industry, making up 44% of the overall revenue, an increase undoubtedly due to the advances in mobile phone and online betting platforms in the last two years.
Online Casinos: Up 79%. With the second biggest market share, the last several years has seen a flood of new online casinos, on computers, tablets and mobile phone devices.
Online Bingo: Up 155%. Worth 17% of the market, this huge increase will have been aided by the closure of a lot of land based bingo halls which has sent their players to online platforms.
Online Poker: Up 8%. A smaller increase, but this means that online poker contains 15% of the online gambling market in the UK, its smaller percentage possibly due to the game being harder to master.
Is This Good News For the UK?
Well, yes, for the UK online gambling industry it is excellent news, as it shows the industry is still developing and profiting. However, there have been estimates made by analysts that the UK Government has missed out on a whopping £2.1 billion in revenue since setting the tax rate at 15%, by effectively forcing UK based gaming companies out of the country.
Many companies, such as William Hill (who command a 15% share of the overall market), have since moved their operations offshore to take advantage of more flexible tax rates, which has meant a huge loss of revenue for the UK, in terms of corporation taxes, income tax and National Insurance payments to name but a few revenue sources. You can read an independant review of William Hill Casino here.
Ian Burke, the CEO of the Rank Group, has hit out at politicians in the UK who consistently take a derogatory view of the online casino and gambling industry, and was recently quoted as saying the politicians’ negative statements with regards to casinos are confusing for the public. Burke stated that the way people gamble has changed, and the heavy restrictions and responsibilities held by online gambling companies today mean people gamble responsibly and overall, simply for fun.
The poor relationship between the online gambling industry and UK government is now be being tackled head on, as there are currently discussing to reduce the tax rate to tempt back some of these big, profitable employers (see here for more). For the UK Government – who are currently under fire for public and social cuts being made – it seems that by adjusting their attitude to the strictly regulated world of online gambling they could easily boost their ailing coffers. By modernising their old fashioned attitudes to online gambling, and start seeing it as the thriving, profitable industry that it is, why shouldn’t the UK economy benefit from this amazing growth too?
Tuesday, 12 March 2013
Should I be Buying Shares in 888 Holdings?
We don’t usually cover share prices in this blog, but with the recent news announcing the legalisation of online gambling in Nevada, New Jersey and Delaware, there has been a flurry of speculation about how the burgeoning US market could affect the online gaming industry around the world – specifically with regards to poker. With the subsequent announcement that 888 Holdings has partnered up with an investment group, Avenue Capital, to launch the All American Poker Network (AAPN) (read more about that here), initially operating from Treasure Island Casino in Las Vegas, all UK eyes are on two things – the poker traffic and the share price.
888 Holdings – Poker Traffic and Share Price
888 Poker currently ranks fifth on the PokerScout.com online traffic report, with an average of 2,450 real money ring game players over the last seven days. 888 reported in April 2012 that their poker revenue had increased from $11 million to $21 million in the first quarter like for like periods, and that their poker platform saw a whopping 83% increase in traffic from 2011-12.
Certainly, there is every chance we could see them becoming an even more formidable force, if their real money hands increased to such a level they could catapult into the Top Three. The iPoker Network, currently in fourth place with 3,200 games on average and PartyPoker, with 3,300, are separated by a hairs’ breadth, and it wouldn’t take much of an increase from US traffic to see 888 overtake these two brands.
Interestingly enough, Full Tilt are holding onto second place behind industry giant PokerStars by just 50 hands more than Party Poker (3,350). It is unlikely that Full Tilt will be allowed back into the US online poker market after the events of Black Friday (read more about what happened here), so their current level of traffic is unlikely to increase with the new legislation.
All this is good news for online poker sites like 888, who are new to the USA and are establishing formidable partnerships with key US casino operators, as it means there is an untapped market of old Full Tilt players just waiting to play again.
888 Holdings as a whole is benefiting from the potential of this sunny outlook. Share prices reached a record high on 7th March 2013, after the announcement of the legalisation of online poker in Nevada and New Jersey, topping 183.31. This is an increase of a massive 207.41% in the last year – a phenomenal increase.
You can see a screenshot of the Share Summary below, just to give you an idea of which way the line is going!:
All this, and the first US hand has not even been dealt yet? It sure looks like a good time to invest in 888 Holdings. Lets just hope the US poker market doesnt turn out to be a damp squib, as some analysts are prophesising.
888 Holdings – Poker Traffic and Share Price
888 Poker currently ranks fifth on the PokerScout.com online traffic report, with an average of 2,450 real money ring game players over the last seven days. 888 reported in April 2012 that their poker revenue had increased from $11 million to $21 million in the first quarter like for like periods, and that their poker platform saw a whopping 83% increase in traffic from 2011-12.
Certainly, there is every chance we could see them becoming an even more formidable force, if their real money hands increased to such a level they could catapult into the Top Three. The iPoker Network, currently in fourth place with 3,200 games on average and PartyPoker, with 3,300, are separated by a hairs’ breadth, and it wouldn’t take much of an increase from US traffic to see 888 overtake these two brands.
Interestingly enough, Full Tilt are holding onto second place behind industry giant PokerStars by just 50 hands more than Party Poker (3,350). It is unlikely that Full Tilt will be allowed back into the US online poker market after the events of Black Friday (read more about what happened here), so their current level of traffic is unlikely to increase with the new legislation.
All this is good news for online poker sites like 888, who are new to the USA and are establishing formidable partnerships with key US casino operators, as it means there is an untapped market of old Full Tilt players just waiting to play again.
888 Holdings as a whole is benefiting from the potential of this sunny outlook. Share prices reached a record high on 7th March 2013, after the announcement of the legalisation of online poker in Nevada and New Jersey, topping 183.31. This is an increase of a massive 207.41% in the last year – a phenomenal increase.
You can see a screenshot of the Share Summary below, just to give you an idea of which way the line is going!:
All this, and the first US hand has not even been dealt yet? It sure looks like a good time to invest in 888 Holdings. Lets just hope the US poker market doesnt turn out to be a damp squib, as some analysts are prophesising.
Tuesday, 5 March 2013
BREAKING NEWS - 888 Launch First Real Money Casino on Facebook
888 Holdings have announced the launch of their first ever real money casino app on Facebook, named MAGIC888. This launch follows the launch of their real money bingo offering, BingoAppy in December 2012, introduced to compete with the successful Zynga Bingo, which has over 1 million active monthly users. MAGIC888 allows players to have all the fun of the 888 Casino through their favourite social networking platform.
The new casino app will be competing with the likes of Bonza Slots, which was introduced by Bonza Gaming (an alliance between Sportingbet and Plumbee) in the start of February 2013. Bonza Slots has already attracted over 10,000 active monthly users, and 888’s casino will undoubtedly be going head to head with this brand, aiming to spread their own in house slots and table games and Live Casino to a wider audience.
This is the second real money social gaming app released by 888 Holdings since they announced that they had entered into an agreement with Facebook to supply real money gaming products last December. The first app, BingoAppy, which was released shortly afterwards, currently has 10,000 monthly active users, which, when compared with the mighty Bingo Blitz or Zynga Bingo with a million apiece may seem low, but is impressive given the short timescale.
Currently, MAGIC888, has just 100 active users after less than one day from its launch, (according to Facebook) so we look forward to checking in with the app to see how that number had increased in another week. You can read more about the App itself in a review here.
The new casino app will be competing with the likes of Bonza Slots, which was introduced by Bonza Gaming (an alliance between Sportingbet and Plumbee) in the start of February 2013. Bonza Slots has already attracted over 10,000 active monthly users, and 888’s casino will undoubtedly be going head to head with this brand, aiming to spread their own in house slots and table games and Live Casino to a wider audience.
This is the second real money social gaming app released by 888 Holdings since they announced that they had entered into an agreement with Facebook to supply real money gaming products last December. The first app, BingoAppy, which was released shortly afterwards, currently has 10,000 monthly active users, which, when compared with the mighty Bingo Blitz or Zynga Bingo with a million apiece may seem low, but is impressive given the short timescale.
Currently, MAGIC888, has just 100 active users after less than one day from its launch, (according to Facebook) so we look forward to checking in with the app to see how that number had increased in another week. You can read more about the App itself in a review here.
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