Betfair, the online gambling company, is now the object of a takeover bid from CVC Capital Partners. The private equity firm also owns Formula One motor racing.
In an announcement, CVC Capital Partners is now in its talks with investors for a consortium bid for Betfair that has a market evaluation of GBP800 million or US$1.2 billion.
Betfair, since its listing in the London Stock Exchange, has lost ground against its competition. It has also pulled out of markets where the gambling rules and regulations are not clear. Because of this, it has lost a quarter of its revenues. It is also in the process of pulling out of Germany and Greece because of high licensing fees and punitive tax rates.
Betfair shares have a current value well below its GBP13 original listing, operates an online exchange allowing gamblers to bet against one another. According to former CEO Breon Corcoran, the company had 'lost its way somewhat.'
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