“We rate Sky as a Buy.”

Sky Bet, the title sponsor of English soccer’s Football League, generated profit before tax of 50 million pounds in the year to June 30, 2014, on revenues of 182 million pounds.

LONDON (Reuters) – European pay-TV group Sky (SKYB.L) has agreed to sell a controlling stake in Sky Bet to CVC Capital Partners [CVC.UL] in a deal which values the online betting business at 800 million pounds ($1.3 billion).

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CVC Partners, which has previously owned bookmaker William Hill (WMH.L), said Sky Bet’s management and staff would remain with the company, which will maintain its close ties to the Sky Sports network.

A British Sky Broadcasting Group (BSkyB) logo is seen at the company’s UK headquarters in west London July 25, 2014.

Sky, which has 20 million customers in Britain, Italy, Germany, Austria and Ireland, would receive 600 million pounds in cash at completion and would retain a stake of around 20 percent in Sky Bet, it said on Thursday.

A British Sky Broadcasting Group (BSkyB) logo is seen at the company's UK headquarters in west London July 25, 2014. REUTERS/Toby Melville

Shares in Sky were up 1 percent in early trading.

CVC, which is a major shareholder in Formula One motor racing, tried to buy online betting exchange Betfair (BETF.L) last year but a proposed billion pound deal foundered over price and strategy.

It could also receive an extra 120 million pounds under the terms of a vendor loan and additional value based on private equity group CVC receiving a certain return on its investment.

Credit: Reuters/Toby Melville

Founded in 2001, the company operates sports betting and gaming sites in the growing online market.

(Reporting by Kate Holton; Editing by Neil Maidment/Keith Weir)

“The partnership between CVC and Sky will provide a strong platform to support SkyBet’s ongoing success at this exciting point in its development,” it said.

Sky said the sale would enable it to focus on the growth areas within its pay-TV business, where it has recently expanded into continental Europe with the purchase of Sky Italia and 90 percent of Sky Deutschland (SKYDn.DE).

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Analysts at Citi said Sky could use the proceeds towards buying out the remainder of the minority shareholders in Germany.

LONDON Thu Dec 4, 2014 4:42am EST

“In the final analysis, we think a sale of Sky Bet is a sensible strategic move and, although likely dilutive to consensus earnings per share, net/net probably positive for the overall investment case,” they said

Freddie Gregory

Freddie Gregory

For recreational bettors who want to place bet with a single bookie. It is suggested that they should select sport book after comparison of different sport books and that sport book should be selected that is offering lowest margins as compare to others these books are mostly located near to the top of odds comparison.
Freddie Gregory

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