Ladbrokes interest in Sportingbet could have big financial impact
Bets are still out as to whether Ladbrokes will go through with its proposed takeover of Sportingbet, and the final decision is anyone’s guess. But whatever the decision, October 17 is the deadline. This follows new rules in the UK that takeover bids must be determined and offered within a certain amount of time—or must be withdrawn.has been contemplating the buy since first approaching Sportingbet in June 2011.
Some analysts say the company may feel pressured to finalize the decision, especially after an earlier bid on another company, online casino group 888, ended badly earlier this year.
One factor that may cause then whole thing to unravel is Sportingbet’s Turkish operation. Right now, Sportingbet is discussing the sale of that venture to Gaming VC. Insiders suggest that if that sale does go through, Ladbrokes will make a proper offer to Sportingbet. Others, however, maintain that Ladbrokes has seemed concerned about possible legacy issues regarding the Turkish interest; just that fact that Sportingbet had operated a Turkish entity could cause problems for Ladbrokes, and their lawyers are trying to protect the company from all possible risks.
Sportingbet’s Turkish operation provides over 20 percent of the company’s net revenues. Ladbrokes, however, has been seeking new ways to stay current and grow within the industry, with a revamping initiated by company CEO Richard Glynn last February, and taking over a diversified company is one solid way to accomplish the goal. Since Glynn’s decision to move forward, there has been a push to invest in the newer technologies and formats, such as mobile gaming, and to create a better fit in local regions.