News Corp sells its stake in Betr after four months, despite $70m investment

News Corp Ends Partnership with Betr, Focuses on M&A Opportunities

News Corp Australia has officially ended its partnership with online betting platform Betr, but remains appreciative of the initial support provided by the media company. Despite their separation, News Corp will continue to be an important partner for Betr as it focuses on growth and explores mergers and acquisitions in an increasingly challenging market.

A Brief History of Betr

Betr was launched in October last year after several years of discussions between Betr founder, Mr Tripp, and News Corp Australia. It is important to note that Betr’s launch was unrelated to News Corp Chairman Lachlan Murdoch’s exploration of the betting market in the United States. However, sources claim that the relationship between Betr and News Corp quickly soured.

Potential Sale to BetMakers and Other Options

Despite News Corp’s silence on the matter, industry insiders speculate that the media company has distanced itself from Betr. Documents filed with ASIC reveal that the only change to Betr’s share structure was an injection of funds from Mr Tripp’s company in February, which diluted News Corp’s stake. After failing to secure alternative funding to acquire the Australian business of rival wagering group PointsBet, Betr explored other options including new investors and a potential sale to technology provider BetMakers. However, discussions with BetMakers ended over a month ago.

Future Plans and Consortium Details

Mr Tripp expressed his intentions to participate in mergers and acquisitions within the sector and claimed to have conducted a successful capital raise for Betr. However, details about the consortium known as the Tripp Group and the amount of money raised remain undisclosed. The exact amount received by News Corp for its shares is also unclear.

Continued Relationship with News Corp

While News Corp will no longer provide financing or assistance to Betr, the media company will continue its relationship as an advertising partner. Betr received discounted rates to promote its platform on Foxtel during its launch. The formal end of the partnership means that News Corp will no longer assist Betr in meeting its obligations to customers.

Finalizing Payments and Financial Pressure

Betr has finalized over $40 million in payments to customers who participated in a 100-1 promotion last year and backed the Panthers to win their third consecutive NRL Premiership. This promotion, which resulted in a $210,000 fine from Liquor and Gaming NSW, put financial pressure on Betr. In an attempt to reduce liabilities, Betr offered Penrith backers the option of a reduced payout. Despite these challenges, Mr Tripp claims that the business is profitable and the $100-1 markets have provided strong momentum throughout the year.

“The $100-1 markets have given us strong momentum all year and provide a big boost for customers heading into spring,” said Mr Tripp.

Conclusion: Despite the end of its partnership with News Corp, Betr remains focused on growth and exploring M&A opportunities in a challenging market. The company has finalized payments to customers and continues to strive for profitability.

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