Paddy Power & Betfair to merge!

okidoki987

http://www.independent.ie/business/irish/paddy-power-shareholders-in-line-for-80m-windfall-if-betfair-merger-agreed-31479069.html

The_Kew_Tour

Great news

Big C

PPower shares up 20%, would be a nice few bob for those in the know

diomed

Bad news

Mantis Toboggan

Surely one for the competition authority?

the groutch

awaits profitable Betfair accounts being restricted to bets of €2

Harry Palmr

Seems like a retrograde step for the punter. Pat Kenny's programme on Newstalk will be covering this with someone from the Racing Post between 10 and 12

Harry Palmr

Bump its on now.

http://www.newstalk.com/player

duckysauce

The_Kew_Tour wrote: »

Great news

how is it great news ?

4068ac1elhodqr

Summary of a few of the other notes of interest on the news:

- Paddy Power shareholders would own 52% of the combined business.
- The combined business would have annual revenues of some £1.1bn.
- The new group would be the UK online market leader with a 16% share, according to industry data, passing a recently merged Ladbrokes/Coral on 14%, as well as William Hill and the privately owned Bet365.
- Breon Corcoran, (boss of Betfair), would become chief executive of the combined group.
- Based on their closing prices on Tuesday, Betfair was worth £2.4bn and Dublin-listed Paddy Power was worth €3.4bn
- Fine details/contracts still being worked out etc.

Guess it's a good thing for Ire, as PP would still be the Maj controller holder, and if user specific limits/restrictions aren't passed over to BF.

okidoki987

One would assume Betfair Sportsbook would go and the exchange would continue as normal?

bradlente

It's more or less a reaction to the Ladbrokes/Coral merger by the sounds of it. Instead of four companies owning 5-10% each of the market share of the industry now two companies will pretty much own a third of it and look to own more. So if they keep growing beyond this competition is going to be pretty stifled. There was already the possibility of Ladcoral going to court because the merger was so big and this is bigger. Don't know how anyone could see it as good news tbh.

okidoki987

Less choice, bigger margins?

Hulk Hands

bradlente wrote: »

It's more or less a reaction to the Ladbrokes/Coral merger by the sounds of it. Instead of four companies owning 5-10% each of the market share of the industry now two companies will pretty much own a third of it and look to own more. So if they keep growing beyond this competition is going to be pretty stifled. There was already the possibility of Ladcoral going to court because the merger was so big and this is bigger. Don't know how anyone could see it as good news tbh.

Has nothing to do with the Ladbrokes and Coralmerger. Ladbrokes are a massively struggling company and are somewhat of an irrelevance to these big boys. To a lesser extent coral. That merger was two struggling comapanies merging to survive. This is two very succesful companies merging to take over the gambling world (I say merge lightly, as PP is clearly bigger).

This has little to do with the saturated UK and Ire market. PP has a massive business in OZ with another in Italy. Betfair has one in America. Both are trying to match what bet365 are doing, expanding into all these shady places like China, Russia, Eastern Europe etc. Basiclaly the race is between 365 and PP/BF to take over. Lad/Cor and Hills lag a good way behind. The rest are confined to whatever crumbs the Uk and Ireland gives them

4068ac1elhodqr

What about the idea that Gambling in an ever more 'Centralised EU Superstate of 2020', would be virtually outlawed, monitored (via user id's) and red taped (taxed) to such an extent that China, Asia and the US (which is privately-owned free-trade orientated by nature) might be the only safe haven.

Much the way that activities such smoking, drinking and wolf-whistling at ladies in shared outdoor public spaces is now restricted. There's even talk currently of train carriage segregation of genders in the UK. A nanny superstate would probably also like to bio-metrically limit your alcohol and electricity consumption per week if/when possible.

In summary, perhaps indeed a path to an escape-door to the far East/West for operators, if ever needed in future years.

ceadaoin.

Hulk Hands wrote: »

Has nothing to do with the Ladbrokes and Coralmerger. Ladbrokes are a massively struggling company and are somewhat of an irrelevance to these big boys. To a lesser extent coral. That merger was two struggling comapanies merging to survive. This is two very succesful companies merging to take over the gambling world (I say merge lightly, as PP is clearly bigger).

This has little to do with the saturated UK and Ire market. PP has a massive business in OZ with another in Italy. Betfair has one in America. Both are trying to match what bet365 are doing, expanding into all these shady places like China, Russia, Eastern Europe etc. Basiclaly the race is between 365 and PP/BF to take over. Lad/Cor and Hills lag a good way behind. The rest are confined to whatever crumbs the Uk and Ireland gives them

I wouldn't call the ladbrokes and coral merger an irrelevance. Ladbrokes are a huge company and yes they are struggling but their turnover per year is huge. They have the name behind them, if they sorted out their website and marketing they could be a huge threat. They own betdaq too so there is an opportunity to do something with that to rival betfair.

Hulk Hands

ceadaoin. wrote: »

I wouldn't call the ladbrokes and coral merger an irrelevance. Ladbrokes are a huge company and yes they are struggling but their turnover per year is huge. They have the name behind them, if they sorted out their website and marketing they could be a huge threat. They own betdaq too so there is an opportunity to do something with that to rival betfair.

I think Ladbrokes are only huge though because of their insane number of shops, some of which are more of a hinderance to them than a help because of the high rents. With legislation on FOBT'S going to come in eventually, and the fact that shops are dying, a huge part of their business is going to go. Their share price was down to £1 and it was only that due to the hope of a merger. The fact that a two bit company like Coral have the upper hand in a merger says it all imo. I heard they had given up on Betdaq too, that it was dead in the water. Must go down as one of the worst acquisitions of all time that one. I might be wrong, but I can only see Bet365 getting bigger, and maybe PP challenging. Rest bar Hills maybe are going nowhere imo

ceadaoin.

Hulk Hands wrote: »

I think Ladbrokes are only huge though because of their insane number of shops, some of which are more of a hinderance to them than a help because of the high rents. With legislation on FOBT'S going to come in eventually, and the fact that shops are dying, a huge part of their business is going to go. Their share price was down to £1 and it was only that due to the hope of a merger. The fact that a two bit company like Coral have the upper hand in a merger says it all imo. I heard they had given up on Betdaq too, that it was dead in the water. Must go down as one of the worst acquisitions of all time that one. I might be wrong, but I can only see Bet365 getting bigger, and maybe PP challenging. Rest bar Hills maybe are going nowhere imo

No doubt about it, they were happy for years sit on their laurels counting the money they were making due to the amount of shops they have. They really missed the boat on the online betting and by the time they scrambled to catch up they were so far behind it was a joke. It's do or die for them now I think but it isn't a lost cause.

okidoki987

They own betdaq too so there is an opportunity to do something with that to rival betfair.

I think that boat has sailed.
They have done nothing to attract new people to the website since they took betdaq over.
Better liquidity on other betting exchanges.

JONJO THE MISER

The only betting exchange with any good liquidity for American sports is matchbook, betfair have nearly no liquidity on these markets.

okidoki987

matchbook

+1 also good on soccer.
However you do have pay 1% commission whether you win or lose.