Betty Power: Paddy Power and Betfair keep 'dual brand strategy' in £5bn merger

Paddy Power and Betfair have floated a multi-billion pound merger that would create one of the biggest betting firms in revenue and scale.

Paddy Power: the mischievous brand's July campaign
Paddy Power: the mischievous brand's July campaign

The two are still hammering out terms of the all-share deal, which will likely be worth more than £5bn, but said the agreement had "compelling" strategic logic.

The combined entity will be called Paddy Power Betfair Plc, but would keep the two "distinctive and complementary" brands and pursue a dual brand strategy in Europe.

Marketing understands CMO Gav Thompson will be staying in place, although talk of cost synergies suggests there will be job cuts.

Paddy Power jokingly hinted at the move in July, after rivals Ladbrokes and Coral merged.

Should the deal go ahead, Paddy Power shareholders would own 52% of the company, while Betfair shareholders would take 48%.

Paddy Power chairman Gary McGann and Betfair CEO Breon Corcoran will become chairman and CEO respectively of the overall group. Paddy Power CEO Andy McCue will become COO, while Betfair CFO Alex Gersh will take on the same role for the group.

The news comes after a flurry of activity in the gambling market, with also up for sale and likely to go to either GVC or 888. The new firm’s combined value would leave current number one, William Hill, trailing behind.

Paddy Power this morning reported a 33% rise in operating profit to €80m (£58m) for its interim half-year results. Growth was largely driven by mobile and retail, with the former accounting for 67% of all online revenue.

In June, Betfair posted strong results for the 12 months to the end of April, with pre-tax profits up 66% to £101m. At the time, Corcoran attributed the brand’s wide appeal to its successful ‘Tap Tap Boom’ campaign.

Meanwhile Betfair Poker, with its characteristically loopy humour, has been commenting on the news.

Paddy Power, meanwhile, has been flirting with its new partner:


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