Breaking News BETFAIR Merging with Paddy Power

News, chat and debate about the Betfair betting exchange.
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Alpha322
Posts: 843
Joined: Fri Oct 30, 2009 4:45 pm

A merger between Betfair and Paddy Power
I
Heard this on L.B.C financial news buliteen, is this true, how will that affect the markets

:shock:
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LeTiss
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Joined: Fri May 08, 2009 6:04 pm

My heart sinks further

It just shows BF have truly disappeared to the dark side - they are becoming more and more interested in being a bookmaker, not an exchange

Who would like to offer prices of when the exchange finally gets closed down?
fortfield
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Joined: Sat Aug 24, 2013 7:52 pm

A good match, one has a history of distasteful bets, the other distasteful charges
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Euler
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Location: Bet Angel HQ

I honestly thought this was a wind up this morning, a totally true WTF moment.
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Euler
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Surely Breon has gone mad?
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LeTiss
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Euler wrote:Surely Breon has gone mad?
Like he gives a fuck, Peter

He's already pocketed £11M - he'll see this through and resign
Golfer
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Ridiculous stuff! 52% / 48% breakdown is also baffling, doesn't BF have a larger market cap?
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Euler
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Betfair is agreeing to a takeover, but Breon becomes CEO. It's empire building at it's worst using Betfair as capital! Never predicted this in a million years.
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Euler
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Shares up to £30!
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Euler
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LeTiss 4pm wrote:He's already pocketed £11M - he'll see this through and resign
Just the share price move this morning means he will pocket millions more.
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LeTiss
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I've been very outspoken from Day 1 about this coont from PP

His background was pure bookmaking, he had no interest in the exchange mechanism or it's philosophy.

I think the exchange is on borrowed times - they don't want people punting on there because they make no money from them, just the commission from the successful layer. They want those punters on the sportsbook.
andyfuller
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Joined: Wed Mar 25, 2009 12:23 pm

What I would like to see is the exchange spun off into a separate company from the sports book.

I didn't see this coming, what do people think is the logic behind it? Paddy Power already have a strong online presence I thought, it opens up access for Betfair to a large stock of high street shops but it does seem that all the focus is likely to be on the sportsbook part of Betfair's business rather than the exchange.

Yet more interesting times for the trading market.
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Euler
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I'm phoning around the analysts this morning and will listen in on the conference call and see what I can drag up. Everybody surprised by it.
lord
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Joined: Sun Apr 19, 2009 2:26 pm

I wrote about this previously when we were discussing exchanges and being full time on them. I mentioned the need to have other incomes and that
"We are lucky there still was an exchange."
This merger just brings the death of the exchange closer

as Le Tiss says. "I think the exchange is on borrowed times - they don't want people punting on there because they make no money from them, just the commission from the successful layer. They want those punters on the sportsbook."

We are going to hear talk of "business models" "realignment" "cross pollination"

This has always been my worry with full time trading and its a sad day.
andyfuller
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Joined: Wed Mar 25, 2009 12:23 pm

I don't see this as the death of the exchange. I think that is a knee jerk reaction to the news. The exchange is still very very profitable and I think it is quite clear that the majority of people who are using the exchange are not the kind of customers who would go back to the sportsbook.

So I suspect the exchange will continue to be undervalued by the new group as has been the case the last few years with Betfair but I don't see them looking at it as an opportunity to close it down. I don't see the logic of closing it down, only if you think all the exchange customers will switch to the sportsbook would you make such a decision or you would be handing on a plate to Ladbrokes/Betdaq a huge increase in profits.
Euler wrote:I'm phoning around the analysts this morning and will listen in on the conference call and see what I can drag up. Everybody surprised by it.
Do you have a link to the call Peter? I can't seem to find one.
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