According to The Sydney Morning Herald, the potential bid alongside a US investment fund represents the latest significant move by Fox Corp to expand its global betting business and would allow its Executive Chairman and CEO Lachlan Murdoch – the son of media mogul Rupert Murdoch – an opportunity to further invest in his country of origin.
It would also represent the second such approach for Tabcorp’s wagering arm in as many months after British sports betting and iGaming group Entain PLC made an offer in February.
Tabcorp said at the time it “confirms that it has received a number of unsolicited approaches and proposals in relation to a potential transaction involving Tabcorp’s Wagering and Media business.”
“The proposals were expressed to be confidential, indicative, non-binding and subject to numerous conditions including due diligence, financing and various regulatory approvals. There is no certainty that any transaction will occur. The Tabcorp Board is assessing the proposals and Tabcorp will update the market in due course,” the company added.
Fox Corp. made its betting ambitions clear in 2019 when it formed a joint venture called FoxBet alongside The Stars Group, owner of the world’s number one online poker site PokerStars. The Stars Group has since merged with Flutter Entertainment.
Tabcorp is currently weighing up at least two offers for its wagering and media business from global powerhouse and Ladbrokes owner Entain and US private equity firm Apollo.
The US$10 billion company has not said if it will move towards a formal sale process. Major investors have pressured Tabcorp to demerge its underperforming wagering business, which has lost ground to online rivals such as Sportsbet, to unlock value in its booming lotteries arm.
Source: GMB
