Spanish gaming group Codere has been reported to be for sale with a valuation of 2 billion euros (approximately 2.3 billion US dollars), attracting widespread attention in the industry. However, Christian Tirabassi, founder of the M&A consulting firm Ficom Leisure, openly stated that this valuation is "purely public relations" and the actual value is far less than this. He believes that the sale of Codere "looks more like a private equity play," although giants like Lottomatica, DraftKings, and Entain will participate in the bidding, the real buyers are few and far between. Simply put, the asking price is high, but whether it is worth the money, people in the circle are clear. Want to know the latest trends in global gaming M&A? PASA official website keeps track.
Overestimated valuation: 84 funds passively hold shares, no investment in five years leads to "exhausted" business
Tirabassi pointed out that Codere is currently held by about 84 investment funds, which were originally bondholders and became shareholders due to debt restructuring, with no intention of long-term holding. Due to the lack of real industrial investors, the company has not received substantial capital injections for five consecutive years, and the business is "exhausted," like "a ship without direction and no one driving." He believes that the rumored valuation of 2 billion euros is inflated by media speculation, and the actual transaction price will be much lower than this. Any buyer taking over will need substantial capital investment and a clear industrial plan to revitalize the business.
Strategic value: Online and offline must be bundled, offline business can still make money
Despite Codere's difficulties, Tirabassi believes it still has value—its business covers Spain, Italy, and several Latin American countries, and involves all gambling sectors besides lotteries. He specifically emphasized that Codere Online must be included in the overall sale, "Splitting off the online business from the start was odd." Regarding the increasingly digital trend of the industry, he insists that offline business still has appeal: "Physical casinos can make money, that's obvious. If online and offline can be effectively combined, it will form a very strong omnichannel advantage and can also withstand policy risks such as advertising restrictions." Want to know the latest trends in global gaming M&A? PASA official website keeps track.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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