Eddie Jordan, an Irish businessman and former owner of a Formula One (F1) team and former F1 manager, could be eyeing Scientific Games’ OpenBet sports betting unit.
Eddie Jordan Might Be Up for a Mega Acquisition in Gaming
Eddie Jordan, an Irish businessman and former owner of a Formula One (F1) team, could buy out Scientific Games’ OpenBet sports betting unit, which a Scientific Games division recently put on for sale. In June, Scientific Games revealed that it would sell its lottery and sports betting business to reduce its debt burden, which currently amounts to $9.5 billion.
The Currency, an online publication based in Ireland, reported that a Las Vegas-based gaming technology company would support Jordan’s bid. The OpenBet sports betting unit’s valuation amounts to at least $1 billion.
Mark Webber, a former Australian F1 driver and a friend of Jordan’s, posted recently on social media that Jordan could be up for a “mega acquisition in gaming.”
Scientific Games Could Sell Has Three Options for Selling
According to Scientific Games, it could sell its OpenBet units and the lottery in one of three ways. It could make a transaction through an IPO (initial public offering), a merger with a SPAC (a special purpose acquisition company), or it could make a traditional sale or a merger with another company.
There have been rumors that Scientific Games is considering an Australian IPO for its lottery, but analysts think it could fetch a higher price. According to one investment bank, an Australian IPO of the lottery could amount to between $3.44 billion and $5.16 billion.
The OpenBet division could have buyers among the largest sports betting operators in the world, as it operates with billions of dollars in bets.
Scientific Games’ Plans to Sell Raises Analysts’ Eyebrows
According to Scientific Games, if the company has “higher than expected prices” for its lottery and sports wagering units, it could reassure investors that there are no concerns regarding its debt and rebuild its positions on the stock market.
Now, Scientific Games’ shares are almost 47% higher than the same time last year, which is the result of the company’s hard work and excellent performance in the gaming industry. However, analysts aren’t pleased with the company’s plan to sell its lottery and OpenBet division to relieve itself from some of its debt burdens and the result is yet to be seen on the stock market.
Shares already slumped by 14.42% this week. The decline is related to Scientific Games’ plan to buy out 19% of social casino developer SciPlay Corp.
Jordan Has an Inside Man
Jordan has a man on the inside that might help push the deal along, at least to a certain point. He is reportedly linked to Keith O’Loughlin, former Senior VP of sportsbook for Scientific Games. O’Loughlin reportedly stepped down last month after four years on the job because he is supporting Jordan’s acquisition efforts. Previously, O’Loughlin was the Executive VP of OpenBet before the entity was purchased by Scientific Games from NYX Gaming Group. Prior to that, he was involved with Boylesports Online and Ladbrokes Coral.