Betfair acquires US horseracing TV network
Betfair Group said on Wednesday its TVG division has acquired an US horseracing television network from the Stronach Group.
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The HRTV network will be entirely owned by the online betting and gaming operator after an initial payment of $25m and a further consideration of $47.8m. The group said, however, the total consideration is dependent upon the division’s future handle, or the amount of money wagered at events.
The acquisition includes broadcast rights to all races from Santa Anita, Gulfstream Park, Pimlico, Golden Gate Fields and Laurel Park for a term of seven years.
Betfair spent $4.3m in television fees to HRTV in the last year while the TV channel was holding exclusive rights for some races. Following the transaction, TVG will not pay any more television fees.
Chief executive Breon Corcoran said: "This deal strengthens TVG's position as a significant player in the US horseracing industry, bringing together the US' leading racetracks under a single TV network for the first time.”
Oriel analysts gave a ‘hold’ recommendation and said: “This appears to be a logical transaction although there is no impact on short term earnings. The shares have performed well in the last six months and while the earnings before interest, taxes, depreciation, and amortization guidance for 2014/15 of £97m to £103m may be conservative, the shares now trade on premium rating.”
Shares in Betfair were up 0.69% to 1605p on Wednesday at 08:43.