In some shocking iGaming news today, online betting giants Paddy Power and Betfair have revealed that they are in discussions of merging their two brands into a sports betting super power. Perhaps the news isn’t that shocking, however, as Paddy Power sarcastically tweeted just last month that they were going to merge with the sports betting exchange and be called Betty Power. Today, the management teams of both companies reveal plans to do just that by uniting the complimentary brands in a deal which would have a combined yearly revenue of around £1.1 Billion. The combined sports betting super power would lead the sector with 16% market share making it one of the largest online gaming companies in terms of revenue. It is said that Paddy Power shareholders would have a 52% stake in the combined business while Betfair shareholders would retain 48%.
The online gambling sector has been consolidating left right and center. Last year, Amaya Gaming bought PokerStars for $4.9 Billion, Scientific Games acquired Bally Technologies for $3.3 Billion, Lottery giant Gtech aquired IGT for $6.4 Billion and recently Ladbrokes and Gala Coral announced their merger plans in a deal worth £2.3 Billion. It would seem the recent consolidation of Bwin Party and 888 Holdings in a £898.3 Million deal is not yet official as GVC is still in a bidding war with 888.
The Paddy Power and Betfair merger is expected to be finalized in 2016 and PaddyPower shareholders are to receive a €80 million ($92 million) dividend. We look forward to seeing what advertising antics they will get up to as a combined company. Paddy Power in particular have always had the most over the top social media and television ads so let’s see if Betfair will get on board with their marketing tactics.
