The Stars Group’s recent takeover of Sky Betting and Gaming (SBG) has definitely not gone unnoticed by regulators and the iGaming and sports betting world. Now, that the deal has been finalized, there have been some notable developments in the fortunes of the company.
A Great Deal in the Making
The takeover bid for Sky Betting and Gaming (SBG) carried out by The Stars Group was finalized on Thursday, with the UK competition authorities giving the go-ahead to the deal. The deal that is worth $4.7 billion has come with a few conditions, one of which, it appears, is that Ian Proctor will be replacing Richard Flint as the new CEO at SBG.
The internal restructuring has been quite sweeping, according to the latest information released to the media. Proctor has been serving as SBG’s Chief Financial Officer (CFO) and is now taking the role of Flint who was at his post for over a decade.
Meanwhile, Conor Grant, who has been in charge of much of Sky Bet’s gaming portfolio is now stepping in as the new Chief Operating Officer (COO). The newly-emerge behemoth will seek to apply cost synergies in order to benefit in full from the newly-concluded deal.
News that The Stars Group completed the acquisition of the sports betting company surfaced on July 10, 2018 when the group issued a press release. In their official statement, The Stars Group were particularly careful to point out the benefits that SBG is bringing to the table.
One of the key advantages of partnering with SBG was the omnipresence of the company’s mobile platform. Not only that, but SBG had been one of the earliest adopters of mobile-first sports betting facilities, which coincided well with The Stars Group’s own plans for the future.
Savvy Corporate Restructuring
Diversification of the portfolio has been crucial element in the strategy of both companies. With the finalization of the deal, courtesy of the UK competition authorities however, there have been strong indicators that companies that specialize in different segments of the iGaming industry and sports betting can bridge the gap nicely by striking strategical partnerships.
Meanwhile, Flint commented for iGaming Business, a respected publication that coves exclusively the industry, saying the following,
I am confident that the new management structure, which includes an operational board for SBG, will allow us to maintain our unique culture that has delivered success over the years and continue delivering market share gains in the UK online betting and gaming market, building on our position as the UK’s most popular online betting brand.
With the endorsement of the outgoing CEO, The Stars Group stands to benefit from a newly-acquired gaming behemoth, which will allow it to achieve the diversification of its portfolio that is captured in Flint’s fresh statement.
Consolidation between poker rooms and sports bookmakers is definitely not a popular strategy, but precisely because it comes from two companies that don’t overlap their activities, it may just work fine. Naturally, one should be aware of the potential risks and consider what is happening to Paddy Power Betfair which has been struggling despite its dimensions.