Entain Australia CEO takes aim at rival Tabcorp bids

Entain Australia CEO Dean Shannon has criticised a rival bid from BetMakers for Tabcorp’s highly coveted wagering and media division. In comments reported by the Australian Financial Review, Shannon questioned the rival cash-plus-shares offer from BetMakers, suggesting the sports betting supplier would be unable to deliver on its strategic rationale. “I think the offer is very ambitious. To me it’s just still a bunch of promises,” Shannon said. “When you compare that to an all-cash bid, our offer is compelling,” he added. Entain is one of two all-cash bidders for Tabcorp’s wagering and media business along with Apollo Global Management, which submitted a A$3.5bn (£1.9bn) offer in May. The US-based private equity firm also submitted a separate proposal for the gaming services division for an additional A$500m. BetMakers launched a A$4bn (£2.1bn) bid for the sought-after operating segment last week, a deal which comprises a A$1bn cash payment and a further A$3bn to be paid in BetMakers shares. BetMakers’ bid is fronted by Australian investor Matt Tripp, who serves as a strategic adviser to the ASX-listed business, which has said it wants to expand the TAB business internationally and into the US market. Shannon suggested Entain would look to protect the long-term prospects of the company, while Tripp could be tempted to cash in on another sale further down the line. He said: “We’re not private equity; they’ll get the business and flip it. Matt Tripp’s a deal maker and perhaps he’ll flip it at some point. “We don’t need to do a deal and get out in two years. We want to own this business forever. We want to be number one in every regulated market we can be in,” he added. Elsewhere, reports have suggested the Australian division of Rupert Murdoch’s News Corp business is in negotiations with his US media business Fox Corp to secure licensing rights to the Fox Bet sports betting brand ahead of an Australian launch of the business. News Corp currently has a small sports betting affiliate presence with racing sites Punters.com.au and Racenet, as well as live sports odds on its Foxtel streaming service. However, it is claimed that the firm will look to expand into sports betting via the deal. Sources have suggested News Corp will look to license the Fox Bet name via a non-cash agreement, formed with advertising credits in News Corp-owned publications The Australian, The Daily Telegraph and The Herald Sun, as well as pay-TV operator Foxtel. BetMakers would supply back-end technology to the business News Corp betting business in Australia.