This gamble looks set to pay off
Gambling businesses Betfair and Paddy Power are taking a punt on a merger that will create the planet’s largest online betting companies.
The all-stock merger will create a company worth a staggering $6.5bn, which will become a powerful force in the gambling market.
According the FT, the deal will see Paddy Power’s investors take a 52% in the business, with Betfair’s shareholders taking the rest.
The news saw Paddy Power’s shares jump 16% to €90.70 in Dublin, while in London, Betfair’s shares soared by 18% to £30.72.
According to the BBC, Breon Corcoran, the current boss of Betfair, would become chief executive of the combined group, Andy McCue at Paddy Power, would become chief operating officer.
The companies said the deal had “compelling strategic logic”, and would strengthen their positions in the market.