Potential News International Acquisition of Racing Post

Details have surfaced about News International's possible purchase of the Racing Post.

News International is planning to buy Racing Post, a leading horse racing newspaper, from its current owner, Spotlight Sports Group, which is owned by the investment group Exponent. This purchase would help News International grow its business in online betting and sports gambling, adding to its portfolio that includes newspapers like The Sun and The Times.

Debating the Purchase Price

People first thought Racing Post was worth around £300 million ($382 million), but News International believes that's too much. They want to pay less than £200 million ($255 million) for it. The higher price doesn't suit them. News International has been involved in the UK gambling industry before, like with their SunBets business that's now closed.

Reasons News International is Interested

• News International is looking to expand in online sports betting.
• Racing Post fits into its portfolio alongside its other gambling ventures.
• The media conglomerate aims to leverage Racing Post's brand and affiliate relationships.

SSG and Exponent are growing their digital operations.

Exponent has changed Spotlight Sports Group by turning Racing Post into a leading affiliate marketing site. Their strategy includes creating digital content to attract today’s consumers. Spotlight also owns additional affiliate marketing and information services, such as Free Super Tips, MyRacing, Pickswise for the US market, and the data service Superfeed.

Possible Outcomes for Exponent

Exponent planned to sell its subsidiary, SSG, by possibly selling another company it owns, Racing Post, for about £500 million or $637.8 million. They appointed PJT Partners, an investment bank, to help with the sale. The online betting company Better Collective showed interest in buying but eventually, the sale didn't happen.

Racing Post's Development

Racing Post is valuable not only for its name but also for its tech updates. In 2022, they improved their betting shop screens to make them easier to use, which helps keep customers interested in an ever-competitive market.

Conclusion

News International wants to buy Racing Post for a price that fits its budget. This purchase would add Racing Post's well-known horse racing and betting services to News International's business, enhancing its current gambling offerings. If successful, News International would strengthen its role in the online betting market and gain a valuable part of its digital business.