MultiChoice buys 20% in Betking for $81 million, valuing the company above $400 million. Essentially, MultiChoice does not just want to live on European soccer rights that keep rising on aggregate price, affecting margins in a continent where consumers discover alternative ways to be entertained.
So, provided you call it entertainment – watching Ronaldo and Messi or playing and betting their avatars – money can be made. With BetKing, MultiChoice thinks there is an opportunity to ramp up revenue from Africa’s exploding sector. It could do that without relying on the capacity to ship more money to hold football rights in European capitals.
MultiChoice, Africa’s biggest pay-TV operator, has acquired a 20% stake in BetKing, a pan-African sports betting group.
As part of the deal, MultiChoice has made an upfront investment of $81 million.
(R1.3 billion), with the potential for a further payment of $31 million (R500 million) should specific earn-out targets be met between December 2021 and December 2023.
As the group exercises significant influence over BetKing, the business will be equity accounted as an associate from 1 October 2020 by MultiChoice.
Now that MultiChoice has moved into betting expect major regulations to begin to emerge in this domain. Why? It is easier to attack a visible enemy than these digital startups. No one knows where they operate from. I am not sure BetKing may like what would come shortly, but of course, that is an excellent problem to have when you can cash $81 million.
SOURCE:https://www.tekedia.com/multichoice-dstv-gotv-goes-into-betting-buys-20-of-betking-for-81m/