Betfair and Paddy Power to merge?
Labrokes and Coral decided to merge to make a giganto-bookies, but they've got competition as it looks like Paddy Power and Betfair are going to merge too.
This is only an agreement in principle, but if it pulls through, then it would create one of the largest betting companies in the world. Just imagine how annoying Paddy Power will be with their advertising then!
Together, the companies will pool somewhere in advance of £1.1bn of revenue. Paddy Power shareholders would get 52% of the merged company, with Betfair shareholders getting the other 48%. Of course, the Competition and Markets Authority will have to give this the once over first.
Betfair have been going great guns lately, with their share price rocketing by 142% in the last 12 months. Paddy Power has seen theirs rise too, over the same period, going up by 53%.
Ladbrokes, in that same time, have seen their share price drop by 24%, so this merger news will worry them, no doubt.
Paddy Power and Betfair said: “The combination has compelling strategic logic and represents an attractive opportunity for both companies to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value.”
They're going to try and take over the world, aren't they? One trolling advertising campaign at a time...