Bet365 potentially negotiating sale or going public for an estimated $12 billion valuation
Posted on: May 1, 2025, 01:09h.
Last updated on: May 1, 2025, 02:51h.
Todd Shriber (@etfgodfather) - Read More - Financial - Gaming Business - Mergers and AcquisitionsBet365 US IPO or Sale: A Closer Look
Denise Coates, the CEO of gaming titan Bet365 and Britain’s richest woman, might be entertaining the idea of offloading her stomping ground in a juicy deal worth up to $12 billion.
The Guardian reveals that the Coates family, who have limited yet firm control over the business, have been in discussions with Wall Street bankers, exploring the possibility of a full or partial sale, an initial public offering (IPO), or even a partnership with private equity firms.
The Bet365 Bonanza May Not Be a Pipe Dream
The chatter about Bet365’s destiny began circulating five weeks back when a California-based research firm dropped a hint about the company possibly hitting the auction block, with a price tag between $10 billion to $12 billion being tossed around. Then, in March, Bet365 kicked off its grand march from China, pointing to a potential US listing or a US company acquisition.
A confidential source filled the Guardian in on the latest deets surrounding this potential move: Bet365 could ponder a spin-off of part of its business, although it’s still too early to nail down the specifics. Another source hinted that the company was already working with private equity firms, just in case.
Bet365, the American Contender
Recently, Bet365 set its sights on providing online sports wagering services in Illinois and Tennessee, with Missouri planned for later in the year. Currently, it’s available in a dozen US states, and it controls about 2.5% of the market here.
This minor market footprint could go either way. On the one hand, it could be a turn-off for potential US-based suitors, implying that the $10 billion to $12 billion asking price might be a tad steep. On the other hand, it could mean untapped territory for growth, particularly if Bet365 lands in the right American arms.
If Bet365 were to pursue a US IPO at a $12 billion valuation, it would become the third-largest pure-play iGaming/sports betting stock in the nation, trailing only FanDuel’s parent company, Flutter Entertainment, and DraftKings in terms of market cap. Even if Bet365 were to mark its territory at a $10 billion valuation, it would still rank fourth among NYSE-listed gaming companies, beating out industry giants like Caesars Entertainment, MGM Resorts International, and Wynn Resorts.
Potential Suitors for Bet365
The UK preliminary report doesn’t list any potential suitors if the Coates decide to sell. But if they do, well-known private equity firms, such as Apollo Global Management, which has a long history of gaming investments, might come knocking, even though they haven’t expressed an interest in Bet365 at this juncture.
Flutter, despite a history of acquisitions, is unlikely to be a reasonable contender for Bet365 due to the overlapping nature of their European operations. The field of gaming-focused potential buyers of Bet365 thins after Flutter because many would need to recognize value in the target’s non-US businesses, take on additional debt to close a deal or both.
- The financial prospects of Bet365 are generating various rumors due to the potential sale or Initial Public Offering (IPO) worth up to $12 billion.
- Todd Shriber, known as etfgodfather, discussed the mergers and acquisitions possibilities of Bet365 US, hinting at the possibility of a partial sale, IPO, or partnership with private equity firms.
- The sports betting market is closely watching the withdrawal of bet365 from China, indicating a potential US listing or acquisition, which could place bet365 among the top iGaming/sports betting stocks in the nation.
- If bet365 marked its territory at a $12 billion valuation in a US IPO, it would rank third among the largest pure-play iGaming/sports betting stocks in the US.
- In the case of a sale, well-known finance giants such as Apollo Global Management, known for their gaming investments, could be potential suitors for bet365, though they have yet to express interest.
- Flutter Entertainment, despite a history of acquisitions, is unlikely to be a reasonable contender for bet365 due to the overlapping nature of their European operations.
- The business landscape for potential buyers of bet365 is limited, requiring them to recognize the value in the target's non-US businesses, take on additional debt, or both, to close a deal.