Betfair Floatation More Trouble Than Its Worth?
What was once seen as a brilliant idea may end up more trouble than originally expected suggests Greg Wood of the Guardian Sport Blog. He talked of Betfair’s anticipated floatation in the coming weeks. It all relays to the current economic downturn.
From the Guardian:
It is entirely possible that Andrew Black and Ed Wray, who own 25% of the business, are so confident about Betfair's long-term prospects that the immediate possibility of a double-dip recession is of little concern. Alternatively, it is conceivable that Betfair, in their opinion, is now as valuable as it is likely to get, and so it is time to cash in without delay.
Wood also warns:
Betfair, in this analysis, is a chicken house inhabited by several million birds and a handful of foxes. Some chickens are better than others at avoiding their inevitable fate – some indeed simply offer themselves up for slaughter – but no matter how much you run or hide, Mr Fox will get round to you in the end. Then, one day, there are no more chickens, and the foxes eat each other, or starve.
The floatation is estimated to be worth £1.5bn.
Betfair is one of the few European online gambling houses that has been able to enter the critical U.S. market through its horse racing arm.
Aaron Goldstein, Gambling911.com
