Poll results: Betfair should only go private if price is right
Nearly half of poll respondents believe decision rests with size of potential offer from CVC Partners
Earlier this week it emerged that Betfair is subject to a potential takeover bid from private equity firm CVC Partners.
While talks with investors remain at an early stage, this week’s eGaming Review poll showed readers are split on whether moving private barely 30 months after listing on the London Stock Exchange would be the right move for the operator.
Almost half of respondents (47%) believe the ultimate determinant will be the size of the offer from CVC, which has at this stage simply held preliminary discussions with Betfair shareholders Richard Koch and Anthony Ball. No public mention of an offer amount has been forthcoming at this stage.
Since Betfair went public in October 2010 it has seen its share price drop from a high of more than £15 to a low of less than £6, before this week rising 14.6% from 699.5p to 802p a share. Nevertheless, just 18% of those polled believe the company should remain listed.
The remaining 35% of respondents consider a move private as the best opportunity for the operator to fulfil its long-term growth strategy. Betfair has recently adopted a focus on regulated markets, withdrawing from territories with complex and uncertain futures such as Greece and Cyprus as well as limiting its exposure to grey markets, however delisting could leave the operator with more freedom to position itself as a one-stop shop for online gambling.