Flutter Entertainment, the parent company of Paddy Power Betfair, will buy the Stars Group (TSG), owner of Sky Bet, and create a global betting giant, Racing Post reported on Wednesday. Flutter shareholders would own 54.64% and Stars Group 45.36% of the new entity–to based in Dublin–which would have an estimated stock market value of €9.5 billion and be the largest online betting and gaming operator worldwide. Flutter Chief Executive Peter Jackson would remain in that role in the new company, with Stars Group Chief Executive Rafi Ashkenazi would be the chief operating officer. Gary McGann, Chairman of Flutter, would remain in that role in the new group. Sky Bet Chief Executive and Executive Chairman Richard Flint would become a non-executive director of the new company. The deal would need approval by regulatory authorities in the UK, Ireland, Australia, the US and Canada, as well as shareholder approval from both companies. The merger is expected to finalise in the second or third quarter of 2020.
“The combination represents a great opportunity to deliver a step change in our presence in international markets and ensure we are ideally positioned to take advantage of the exciting opportunity in the US through a media relationship with Fox Sports as well as our development of US sports betting through Flutter's FanDuel and TSG's Fox Bet brands,” said Jackson in a statement of the company that would be a premium listing on the London Stock Exchange and a secondary listing on Euronext Dublin. “We are committed to these two high quality brands to drive the growth of the combined group in the US. The combination will turbo charge our existing four-pillar strategy and provide world-class capabilities across sports betting, gaming, daily fantasy sports and poker, as well as greater geographical and product diversification.”
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