Break down in the talks between GVC and Ladbrokes-Coral

14 Dec 2016

Ladbrokes-CoralThe last few days the whole betting industry was buzzed by the rumored deal between Ladbrokes-Coral and GVC Holdings. According to those rumors, the British company was about to be acquired by Bwin’s mother company, creating a betting industry giant. The rumors appeared to be true after all, but the final chapter of this story was the break down to the conversations between the two sides.

The two companies begun their talks over with an initial deal valuing recently-merged Ladbrokes-Coral at £3.2 billion, meaning 3.8 billion euros. Until now neither of the two sides have commented anything about the break down officially, but to the British side there was another blow and this was the shares drop at a rate of 9% on Monday after the news broke in the industry. The merger would be not only a great surprise, but it would also create a colossal company. We should remind that GVC acquired Bwin.party in February 2016, Betfair merged with Paddy Power in the same month, and Coral merged with Ladbrokes in November 2016.

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Established in 1926, Coral is one of the most prominent betting brands among the UK and Irish bettors. It was one of the first that took advantage of the legislation changes, which led to its first betting office opening in 1961. Over the years, the ownership of the company has changed hands numerous times. Today, being part of the experienced Entain Group and holding multiple licenses create a feeling of safety and stability. Although the overall payout is below par, the horse, greyhound, and football sections are packed, with thousands of events and markets available every month. Among UK bookmakers, Coral had one of the smoothest transitions from high street to online betting. Nonetheless, there are a couple of areas I would like to see some improvements. Even though the website is easy to use, it does not keep up with the current gamification trends. It is evident that the bookie still mainly depends on the High Street Shops for revenue. Moreover, international expansion has not been prioritized, which is peculiar for a company of this caliber. I would like to see them accepting players from more countries in the near future. Overall, Coral remains a top choice for horse and football bettors in the UK and Ireland.

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