The Coates Family Contemplates Major Moves for Bet365: Sale or IPO
Bet365's sports betting company is undergoing potential billion-dollar acquisition negotiations by the Coates family.
The infamous Coates family, billionaire owners of online gambling behemoth Bet365, are deliberating over a significant shift in their business strategy. Discussions of a sale or Initial Public Offering (IPO) on a US exchange are swirling, with a potential valuation reaching a staggering £9 billion (approximately $12 billion USD).
Sale Prospects
- Valuation: A sale could value Bet365 at an immense £9 billion, making it one of the most substantial acquisitions in the industry [1][3][4].
- Options: The family is exploring various routes, from a full sale to partnerships with private equity firms, which would allow them to retain a stake while accessing a generous influx of capital [2][3][5].
- Strategic Positioning: A sale could heighten Bet365's allure to US investors by streamlining its operations, as demonstrated by its exit from China and the transfer of Stoke City FC to John Coates [3][4].
IPO Option
- US Market Target: An IPO on a US stock exchange is also under consideration, opening up access to vast reservoirs of American investment, particularly in the burgeoning US sports betting market [3][5].
- Market Expansion: The US sports betting market is expected to skyrocket, with estimates suggesting it could surpass $23 billion by 2029 [5].
Recent Decisions and Their Implications
- Financial Stability: Bet365's recent financial reports show strength, with revenue increases in its sports and gaming segment and a substantial pre-tax profit [1][4].
- Strategic Moves: The company's departure from China and the passage of Stoke City FC to John Coates are viewed as part of attempts to enhance its desirability to potential buyers [4][5].
In summary, the Coates family's contemplation of these possibilities signifies a strategic shift towards capitalizing on the ever-growing US market and securing new investment opportunities.
According to Alun Bowden, an analyst at EKG, "People have been telling me for years that the only company they'd like to invest in is Bet365. Despite some claiming it's waning, Bet365 remains one of the top, if not the top, online sports betting companies in the world." [The Guardian]
Furthermore, there are whispers that personal factors within the Coates family could play a part in the decision-making process: Denise Coates nearing her 60th birthday may prompt her to transfer ownership to new hands after a rapid two-decade growth period. As per industry analyst Paul Leyland, Coates may wish to prepare her company for its next phase of development, rather than allow it to plateau [3].
The Coates family's potential IPO on a US stock exchange could attract immense financial investment, particularly in the expanding US sports betting market, worth an estimated $23 billion by 2029. Alternatively, a sale of Bet365, valued at up to £9 billion, could engross online casinos in Germany, finance, and investing industries, given its status as one of the world's top online sports betting companies.
