Bet Fair Case Study

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Of course, Betfair share price evolution is similar to Paddy Power’s. Indeed, for the same period (25th / 26th august) Betfair share price grew by 16.40% from 26.03£ to 30.30£, a value of 4.27€. Following the peak, the share price of Betfair fluctuates normally with a little tendency for decrease. I assume this fluctuation result of the division 52% 48% in disadvantage of Betfair. Also, raise of share price from the 25th of august to 8 of September is equal to 19.59% or 5.1 GBP (see Figure 2). c. Reasons of this growth In order to explain the grow of Paddy Power and Betfair share price, the perception of the deal and markets participants is the key of success (Picardo 2015). The merger must be perceive as durable and as economic driver for the industry. In fact, a merger of two businesses who are outperforming on their market , who have a growing share price and are complementary have a great chance of success (Massoudi & Moore 2015).…show more content…
The industry of gambling, where are evolving paddy power and Bet fair, reacts positively to merger announcements. In conclusion the momentum of the merger is reached explaining the important growth of the share price (Rosen 2006) Further, to explain this growth share power, trust of stakeholders is important (Brealy et al. 2011). Both companies are successful and have presented a good results as a raise of 33% of operating profit and a share doubled last year for Paddy Power and 21% raise of full year revenues for Betfair. By consequence, investors would consider this merger as a normal step of industry consolidation economically

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