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Reuters Breakingviews: CVC's Sky bet

Thursday, December 04, 2014 - 04:24

CVC Investment has paid $960 million for 80 percent of Sky's online gaming site. With Sky holding on to a minority stake it could complicate the investment, says Breakingviews.

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So CBC capitalized taking a controlling stake here in the sky you bet. From the pay TV groups guy. I am. Breaking news this hour written about this and has it seems some problems with the deal Dominic Elliott is in the studio I'm. Some from what I can read dot com the V. Sliced steak continued small sky's stake and the board representation is a problem. Well it's a tiny percent stake in the in the retain that can have a board representation I mean these things. On malts on the face of it things that you would think her KC BC wouldn't necessarily want in this case because. I'm in Normandy product Tebow wants to have more or less a 100% of the company if they can have it. You know but in this case. Scott bet Khalili ruled rely on Waltz on. The Skype brand which it is going to keep CBC and I'm also to the advertising that it can get for free three sky sports and no on all of this is very clearly sin by health to excite. So in this case Nevada isn't what you would want to see on the other hand. It's still nevertheless means the CBC at some stage hops. There is a bit of mania limiting factor what they can do with Skype that because. At some stage you would have folds. They might want to seek international expansion. Yes god operates. Sports channels abroad that. That may. Limit what they can do in terms of looking at all the markets. In May also mean that you know. We see to what extent Scott that is just free writing off the Skype name and whether or not you know we can really compete on its side and against some of the pure war in sports things that you know touch technology for me. You have to forgive me for saying this bit is it looking for problems this decay is. Perhaps this board representation or was it very particular to sky sport is that a problem because. Discarded board representation. May not be detrimental match because. I shall I mean it could it could well. Hope I don't think that we can say at this stage for short it's a problem or like at all I'm trying to point out is that you do. In this sort of situation you you can quickly get some friction because. Saying it. They do want to X funds and the season's. Scully thinks okay well we don't have you know. TV channels and revise countries and why why would sky B thoughts keen. On not happening so you know similarly if the days he she decided really want to push technology very called islands scarring. Is sort of a little bit more reticent than. You could have some problems for it you know. You can see why the deal is being done this way if 88 you wouldn't probably do it. In a different ways to Esteban may be problems and I sort of comparison a way to. So perhaps the deals since he wants to do lost he would bet fast right didn't manage to do and we see that drive fast results today. That fact has returned 200 million pounced and shells inside the united validates that says I'm strategy. I. That's amazing and I mean don't mind addressing online gambling now online gaming during the during the growth that we've seen in space and what do you think of the 940 million dollar prize tech experts say while it's yes. It is quite often it's quite Lofton. You have to think that. Bat fifth for example is trading on eighteen times he could toss a bit more than that sort of you did dumping earnings before interest tax and depreciation and amortization and before the parliament in dot dot multiple but the effort has an eighteen times reflects slightly false too great for pet fat. I'm in the gaming space. I guess a good comparable is a recent deal that's a lawyer Canadian crude to folk who could stalls which the biggest. Online poker company it paid twelve times ebitda also. This does look. Fannie pricey based on amounts. The question is can the technology that slide that has really match up to some of the the rifle prone to Zelda. Target so when it many times tonight we don't XP's of course on the freebies website and I aqsa truffle is sorts.

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Reuters Breakingviews: CVC's Sky bet

Thursday, December 04, 2014 - 04:24