Betfair the online gambling company has recently rejected an offer by private equity firm CVC Capital Partners citing that the offer was too low and was full of conditions they just didn’t want. CVC is the largest shareholder in Formula One Motor racing but they just couldn’t reach the checkered flag with Betfair.
Earlier in the week the Betfair stock was trading at 700 pence before CVC had released word they were considering a bid, but then in a turn for the best, the stock rose 4% and investors are convinced this is only the beginning of what could be a strange time for Betfair.
With the online gambling market growing faster than most anything else, there are many companies out to make serious money by buying new online casino brands the world over. Betfair was founded in the year 2000 and is famous for allowing players to bet against one another instead of using a middleman or bookie.
The newest bid by CVCis not too far of the number that Betfair would seriously consider but they will now hold out until a much higher bidder comes around.
Betfair’s stock has dropped drastically since 2010 and have begun pulling themselves out of some countries where regulation is still unclear and tax rates are too high. That doesn’t mean there is still major interest in the company and this latest bid is proof to just that.
CVC truly believes that transforming Betfair into a private company would be a lot more efficient and they do have experience in these things, don’t forget they bought British bookmaker William Hill in 1999 and put them on the stock market three years after.