Sky has agreed to sell a majority stake in its online betting and gaming business, allowing the company to focus on its newly enlarged pay-TV operations.
Formed in 2001 to exploit the potential of online and mobile platforms for betting and gaming, Sky Bet now operates a range of sports, betting and gaming services.
While the business is a success, Sky is looking to focus on its pay-TV operations following acquisition of its German and Italian namesakes.
CVC Capital will pay Sky £600 million in cash for a controlling stake in the gaming business, with the broadcaster set to receive a further £120 million based on pre-agreed benchmarks.
Sky will retain 20% of the business and will continue to have board representation.
As part of the deal the two firms have agreed a long-term brand licence agreement.
All staff will remain with the business under the leadership of the existing management team.
Jeremy Darroch, Group Chief Executive of Sky, said: “In the last ten years, we have successfully grown Sky Bet from a start-up to one of the leading online betting and gaming companies in the UK.
“This transaction will allow us to focus further on the substantial growth opportunities in our core international pay TV business while realising significant value for our shareholders.”
