One of the biggest media conglomerates in Australia, News Corp Australia, is in advanced negotiations with a consortium linked to the bookmaker Matthew Tipp. the deal, under which a new betting outfit is expected to be rolled out, would greatly impact both the ongoing bidding war for the wagering and media arm of Tabcorp and the local gambling sector.
As reported by The Sydney Morning Herald, people linked to the industry, who asked not to be named because the negotiations are private, revealed that Rupert Murdoch’s News Corp is also in talks with the US media company Fox Corp as it seeks to secure a licence that would allow it to use the FOX Bet brand for the new business.
Previously, Fox Corp was aimed at establishing the FOX Bet brand on the territory of Australia by using some help from another betting operator. Several local media hubs reported that the brand is set to be operated by News Corp, which is Murdoch’s local media unit. Reportedly, the brand is looking forward to making its first significant step in the local betting sector. News Corp refused to make comments on the situation.
In 2020, News Corp addressed bookmakers that are already established in Australia hoping to find a local partner that would make it possible to launch the FOX Bet brand. According to sources familiar with the situation, the brand’s owner prefers to launch it as a standalone outfit and partner with equity firms linked to the online gambling operator held by Mr Tripp. For the time being, the parties have not reached an agreement but the negotiations are at an advanced stage.
Potential News Corp and Matthew Tripp-Linked Consortium Deal Could Affect TAB Bidding War
As mentioned above, the partnership between News Corp and Mr Tripp-linked consortium could affect the ongoing bidding war for the betting and media assets of the largest bookmaker in Australia, Tabcorp. Only recently, the local betting technology company BetMakers, which is also related to Mr Tripp, tabled an AU$4-billion cash-and-scrip offer for the company’s betting and media arm.
As one of the sources close to the process, although BetMakers is not directly linked to the consortium that is seeking the launch of FOX Bet, it would still help News Corp establish its betting operations in the country. On the other hand, if its takeover offer for the TAB division of Tabcorp is successful, the involvement of Mr Tripp in both groups would possibly result in a FOX Bet takeover deal, with the two brands operating side-by-side.
As reported by Casino Guardian, BetMakers has offered to pay AU$1 billion in cash and AU$3 billion worth of its own shares to acquire the wagering and media arm of Tabcorp. However, there is no guarantee such a deal would be successful, considering the 16% decline in BetMakers’ share price after the bid was made.
Such a result corresponds to Mr Tripp’s willingness to bring a new life to the TAB business by launching a second brand that would especially target younger audiences that are typically more interested in placing bets on sports than on racing.
- Author
Olivia Cole
