Bet365 Pondering Over 12 Billion Dollar Sale Through American Stock Exchange IPO
Bet365's Potential Sale or IPO Worth a Whopping £9bn-£12bn Sparks Industry Buzz
The gambling titan Bet365, owned by the Coates family, might be up for grabs, with an estimated worth of around £9 billion ($12 billion). The Guardian dropped the bomb on Thursday, revealing that the company has been huddling with US advisers and Wall Street banks over the possibility of selling it, including the tantalizing prospect of debuting on a US stock exchange.
Rumors containing purchasers' names, however, have yet to surface in available reports. The conversation also reportedly includes chats with private equity firms regarding investments in the company.
Hailing from Stoke, Bet365 is one of the shining success stories and has been trying to charm Stateside investors. Today, it operates in 13 states and waved goodbye to China in March, where online gambling remains illegal.
Year after year, the company's chief executive, Denise Coates, makes headlines for her colossal income, peaking at an astonishing £466m ($621m) in 2020.
Current Strategic Landscape
The family might be eyeing a few transaction structures:
- Private equity partnerships: The Coates family could be palling around with unnamed private equity firms, preparing for a partial sale, which may pave the way for a future public offering.
- US stock market listing: A direct IPO, particularly in the US, is under consideration to harness the growth of its North American operations.
- Full or partial sale: The family may opt for a partial divestment, retaining a stake while exploring liquidity options.
Why Go Public Now?
- US focus: Departing from China and expanding into regulated markets like Illinois, Tennessee, and Missouri indicates the company wants to tap into the potential offered by the US market. Currently holding around 2.5% of the market, the company might attract investors seeking growth opportunities.
- Financial Strength: Bet365's impressive financial turnaround, with a pre-tax profit of £596.3 million in 2024, enhances its appeal to institutional buyers.
- Reportedly, Bet365 has been engaging with private equity firms regarding potential investments, possibly indicating efforts towards a partial sale that could pave the way for a future public offering.
- With an estimated worth of £9bn-£12bn, Bet365 might be considering various transaction structures, one of which is a direct IPO in the US to capitalize on the growth of its North American operations.
- Known for its financial strength, with a pre-tax profit of £596.3 million in 2024, Bet365's decision to explore public equity could be driven by the desire to tap into the potential growth offered by the US market.
