18th Feb 2015 07:41
LONDON (Alliance News) - Online betting company Betfair Group PLC Wednesday announced that its subsidiary TVG has acquired the HRTV horseracing television network from US gambling and horse racing firm Stronach Group.
Betfair said the television operations of the Stronach Group's HRTV will be combined with its own TVG network, while it has acquired broadcast rights to all races from Santa Anita, Gulfstream Park, Pimlico, Golden Gate Fields and Laurel Park for a term of seven years.
Betfair said it will pay an initial USD25 million for HRTV, and estimates paying a further consideration totalling USD47.8 million over a seven-year period, dependent on TVG's performance. The group said that based on projected future cash flows, the present fair market value of the payments is estimated to be USD56.3 million.
"Purchasing HRTV and thereby securing these long-term rights strengthens TVG's ability to drive incremental wagering on its advanced deposit wagering platform and is expected to lead to additional advertising and distribution opportunities," Betfair said in its statement.
In 2013, HRTV generated a pretax loss of USD3 million, having generating USD9.5 million in revenue.
"It is anticipated that the transaction will be earnings neutral for Betfair in year one and accretive thereafter," said Betfair.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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