Check the Price: Flutter to Sell Affiliate and Odds Comparison Site Oddschecker
Flutter Entertainment, the owner of Paddy Power and Betfair and one of the world’s biggest gambling companies, is looking to sell its offshoot business Oddschecker, Sky News reports.
The UK broadcaster cites inside sources in the company. They claim that Flutter has employed the services of New York-based investment bank Moelis and Company to broker the sale.
The expected price for Oddschecker, one of the leading affiliate marketing sites in the UK and other markets, is said to be in the region of £150 million ($209.3 million).
Oddschecker formed in 1999 and has grown to be one of the most recognized odds comparison websites across many markets.
However, it was only recently acquired by Flutter in 2020 when the company merged with Oddschecker and PokerStars’ then-owner Stars Group in an $11 billion deal.
Although nothing has been confirmed yet, industry experts could have told you last year that Oddschecker might be one of the first businesses on the chopping block if Flutter decided to streamline its now $27 billion operations.
Flutter’s long-term goals, according to all the company literature and its actions since the merger, is to be the market-leading online casino and sports betting operator in the world.
New Chief Executive Peter Jackson (not the movie director) is said to be focusing on “expanding the group’s core operations.”
That leaves little room for third-party affiliate sites, which are an entirely different beast in themselves.
Oddschecker also suffered recently after rival gambling conglomerate Entain pulled all of its UK sportsbooks from the website.
These included popular brands such as Ladbrokes and Coral.
Insider sources told Sky News that Entain’s decision was a factor in Flutter’s move to sell Oddschecker.
It’s interesting that Sky News was the first media outlet to break this story, as it has skin in the game, too.
Sky PLC are still part shareholders in their own betting brand (SkyBet), which is now owned by Flutter.
To deepen the association, SkyBet was also the long-term owner of Oddschecker from 2007 until 2018.
That lends some weight to these reports, as it would be no surprise if Sky journalists had kept up relationships with staff at Oddschecker, the SkyBet brand, and in Flutter.
Another factor suggesting these reports are legitimate is the fact that Flutter has been undergoing a “structural review” for several months.
These often end in sales of parts of the business, especially after a big merger – and the Flutter and Stars Group merger was one of the biggest in gambling history.
Last year, the new giant conglomerate committed to dropping a whole host of its gray-market assets across the globe, and more sales are certainly not out of the picture.
According to sources, Flutter is potentially also looking to create a separate listed entity for one of its latest acquisitions, the fast-growing US online sports betting and online casino service, FanDuel.
In 2020, Flutter upped its stake in FanDuel from 57% to 95%. That cost the company a cool $4.5 billion, so it’s now looking for some quick returns on that investment.
Still, Flutter is one of the largest operators in the growing US market, with 2020 revenue of around $11 billion.
We’re sure the company can afford to sell off some bits of its business without much trouble.
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