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ballabriggs
08 Jul 13 14:13
Joined:
Date Joined: 11 Jul 11
| Topic/replies: 534 | Blogger: ballabriggs's blog
Why have done this?  Betfair can still make growth, maybe put commission up to 10% or 15%.  No need sell share to Gooldman.

http://www.guardian.co.uk/business/marketforceslive/2013/jul/08/betfair-stake-sale-softbank-goldman

Maybe with Gooldman can now focus on GROWTH and put commissen up, up, up.
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Report frog2 July 8, 2013 2:33 PM BST
Wasn't there are buy out offer of 950p a share afew weeks ago? Now 10.57% reportedly (in the article you linked) being sold for 809p a share.

Something doesnt add up here.
Report viva el presidente! July 8, 2013 2:43 PM BST
Traders said that 11m shares, or 10.57%, was being sold on behalf of Softbank, with Goldman Sachs reportedly paying 809p each. Betfair has dropped 38p to 841.5p.

Update

It appears the shares were placed with institutional investors at 827p each, following a week of City meetings with the company.


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Report ballabriggs July 8, 2013 2:45 PM BST
is good news Gooldman are one of best banks in world, will bring lots of better experts than Japan Bank.
Report ballabriggs July 8, 2013 2:47 PM BST
http://uk.news.yahoo.com/betfair-falls-charlton-sells-11-million-shares-traders-125925833.html?#eAnyGad

Betfair falls as Charlton sells 11 million shares - traders
Reuters – 46 minutes ago

LONDON (Reuters) - Shares in Betfair fall 4.8 percent with traders citing talk that German lender Deutsche Bank is placing 11 million shares of the online betting firm on behalf of Charlton Group.
Shares in Betfair fell 4.5 pence to 840 pence at 1:54 p.m., the top faller on the FTSE 250 index. The stake on sale would be worth 96 million pounds at Friday's closing price of 879.5 pence.
Simon Maughan, head of sector strategy at Olivetree Financial Group, said the holding is part of Softbank which has owned the stock since 2006, and is their entire holding, but another part of Softbank owns a further 4.8 percent.
Traders did not mention a price for the placing or whether the bookbuild had been completed.
Betfair could not immediately be reached for comment.
(Reporting by David Brett; Editing by Francesco Canepa)
Report viva el presidente! July 8, 2013 2:47 PM BST
surely the real question though is why are softbank unloading at that price?

I wonder if someone's parsed that annual report and found it less satisfactory than they immediately thought? whatever, it's hardly an endorsement of current strategy.
Report ballabriggs July 8, 2013 3:06 PM BST
this mights be reason - Softbank downgraded to JUNK.  so maybe is not because they no like Betfair, maybe they need money so are having biggest dump since two females one pottery piece.

http://www.chicagotribune.com/business/sns-rt-us-softbank-rating-20130708,0,309438.story

Reuters
2:22 a.m. CDT, July 8, 2013


TOKYO (Reuters) - Standard & Poor's cut SoftBank Corp's debt rating two notches to "junk" grade, citing financial risks from its $21.6 billion purchase of U.S. wireless carrier Sprint Nextel Corp and Sprint's proposed buyout of Clearwire Corp .

The downgrade spurred a slide in SoftBank's shares, but analysts said the drop was largely due to profit-taking after the stock had surged in anticipation of the Sprint deal, which received final regulatory approval on Friday.

S&P had warned in March it would cut SoftBank's rating to BB+, its highest non-investment grade, if the Sprint deal was concluded.

The downgrade is unlikely to increase financing costs for SoftBank, which should be able to rely on funding from Japanese banks, said Hiroshi Yamashina, senior telecoms analyst at BNP Paribas in Tokyo.

SoftBank in May said it would issue 400 billion yen ($3.96 billion) in retail bonds in the Japanese market, while in April it raised the size of a dual-tranche bond issue in dollars and euros to the equivalent of $3.3 billion from $2 billion.

S&P said SoftBank's outlook was stable, as the ratings agency expects steady growth in its Japanese mobile business and gradual improvement in Sprint's operating performance as the merger brings cost reductions and other benefits.

Moody's Investors Service on June 12 said SoftBank's offer for Sprint would have a limited impact on its rating - now at the agency's lowest investment grade rating of Baa3. The rating has been put on review for a possible downgrade.

SoftBank shares tumbled after news of the downgrade, trading nearly 5 percent lower on the day at 5,600 yen, their lowest this month. They pared losses to end at 5,680 yen, down 3.4 percent.

SoftBank's five-year CDS was quoted around 210 basis points on Monday after the downgrade, a widening of about 20 bps from Friday.

(Reporting by Mari Saito, Nobuhiro Kubo, Dominic Lau and Naoyuki Katayama; Writing by Edmund Klamann; Editing by Miral Fahmy)
Report viva el presidente! July 8, 2013 3:09 PM BST
yeah, I just saw that. so basically it would be down to softbank needing the cash and dumping assets rather than purely an assessment of BF.
Report ballabriggs July 8, 2013 3:48 PM BST
maybe is good time buy Betfair share, price has fall because of fire sale dump, not because fundamentels have change Devil
Report viva el presidente! July 8, 2013 4:35 PM BST
well, firstly you have to think why they chose to sell this particular asset at this particular price. and you need to see how the market responds, given that softbank's position is common knowledge and therefore should be factored into the price.
Report ballabriggs July 8, 2013 4:50 PM BST
maybe they sells quick at fire price because someone told them london stock exchange want to put premium charge on share sale Devil
Report askari1 July 8, 2013 4:53 PM BST
SoftBank's purchase of bf shares has not worked out well for them.

The premiss of the purchase was that bf was going to take over the betting world.

Now bf's own most senior management advise that the best they can hope for is growth is online with the overall gaming market.
Report askari1 July 8, 2013 4:54 PM BST
*the best they can hope for is growth IN LINE with the overall gaming market
Report viva el presidente! July 8, 2013 5:12 PM BST
^and that assumes they can compete with the big sportsbooks. their sportsbook's prices and restrictions to date don't really bear that out, imo, in which case competing will involve throwing more and more money at marketing.

the way the minor markets come to life for marquee events like the wimbledon men's final give you a glimpse of the vision that BF has seemingly abandoned. get more people playing, you get into a viruous cycle: better prices from layers competing, a more competitive product with a wider choice of viable markets, more players drawn in etc. better prices mean recreational players churn through their money more times in the process of losing it = more of it goes on commission.

basically, the opposite of what we see most of the time. ie self-replicating tumbleweeds.
Report askari1 July 8, 2013 5:29 PM BST
The big q. for me is what they advertise next.

If it's their fine exchange prices, w/ some sort of guarantee that they'll match their rivals, then the exchange model might have life left in it.

But their position is difficult b/c bm s can muddy the water w/ specious prices to only £25 or £50 for losers and claim to be price-competitive. And because they turn away winners in a manner that bf don't, they can afford to be wrong on price and not lose the marketing war.

My long-term prognosis wd be that it's only a matter of time b/f the Chinese govt. poss. in partnership with the HK Jockey Club or some Macau-based casino group come up with the world's-best-prices exchange. They will have no need to tap seeding money and they can threaten taxes on/investigation into winning gamblers in such a way as to incentivise usage of their site.
Report BetAngel July 8, 2013 5:49 PM BST
http://www.markxdavies.com/2013/07/08/softbank-sell-out/
Report viva el presidente! July 8, 2013 6:06 PM BST
^don't really agree with his analysis, but he always writes well.
Report askari1 July 8, 2013 6:34 PM BST
Alongside the purchase of Sprint, the bank's bf holding was non-core and their sale has cleared an overhang.

Bf's problem is that they were never worth anything near their float price if all the company can anticipate is growth in line with the movement of the overall gaming mkt.
Report ballabriggs July 8, 2013 6:49 PM BST
maybe japan bank saw drama this week with horse AUSTRALIA having late suspend, going 2.2 to 3.7, and betfair say YES THIS OK, and thought maybe this is not good company no more.  if red card in football in first few seconds match, but no suspend, is not fair to let price go from 2.2 to 3.7?  if horse race start, and everyone who had bet up get boned, is not fair.  maybe japan bank think THIS BAD.
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