Multi-choice acquires 49% stake in BetKing

Multi-choice acquires 49% stake in BetKing

Multichoice, a South African pay-TV operator, has spent R1.3 billion ($81 million) for a 20% investment in BetKing, a Nigerian sports betting company, and may spend another R500 million.

The initial payments were an upfront investment made in 2020 with Multichoice valued at a minimum of R6.5 billion ($31 million), according to a brief interim statement. The increased payment was contingent on meeting undisclosed earn-out criteria that would extend until the end of 2023.

BetKing, the popular betting company is owned by the famous Nigerian footballer, Jay Jay Okocha and his colleague in the football industry, Adekunle Adeniji. 

Multichoice has described BetKing as "pan-African," however the company has only had significant betting operations in Nigeria and Ethiopia. They started operations in Kenya in June 2020 and secured a sponsorship contract with the Kenyan soccer league.

According to Multichoice, the agreement aims to boost income prospects by offering new products and services that will open up new growth potential.

MultiChoice proposes to boost its stock in BetKing to 49 percent in a $281.5 million purchase, seven months after purchasing a 20% position in the online gambling company.

Blue Lake Ventures Limited, a pan-African sports betting and entertainment company with extensive operations in Nigeria, operates under the BetKing brand. The first investment in BetKing by MultiChoice was estimated to be worth more than $100 million.

According to a statement from the South African entertainment giant, the decision to double down on the gambling company, which was approved by the MultiChoice board in 2021 is consistent with the company's plan to extend its entertainment ecosystem and create significant future value drivers.

MultiChoice has announced that it will increase its stake in Nigerian betting company BetKing from 20% to 49% in a $281.5 million deal.

After the MultiChoice board accepted the deal, this was reported in South African media.

According to the source, MultiChoice is likely to finalize its $281.5 million offer for a 49 percent ownership in Blue Lake Ventures Limited (BetKing), with board approval set for June 10th, 2021.

On June 10, 2021, the board of directors accepted a formal deal to buy more of the sports betting company.

In 2018, it was believed that 60 million Nigerians between the ages of 18 and 40 were consistently betting on sports. In addition, Nigerians bet about $2 billion every day on sports, amounting to nearly $730 billion per year. Despite this, Africa only contributes 2% of global sports betting revenue. The regional market is primed for tremendous growth as it begins to catch up.

So Multichoice has definitely set itself up for great expansion and a bigger market to raise its profits.