Betfair Online Gambling's James Packer Seeks Cash

Published: Friday, September 04, 2009 Online-Casinos.com

Back in October of 2006 James Packer announced the sell-off of 50% of Publishing and Broadcasting Ltd (PBL),'s media interests for $4.5 billion AD to focus on its gambling business. The sell-off included Nine Network and its 50 per cent interest in Nine MSN. PBL was then involved in two casino projects in Macau, the $260 million Crown Macau, and the $1.4 billion City of Dreams. PBL's commitment to these ventures was the biggest investment by an Australian company, at the time.

Now in 2009 Mr. Packer is looking for cash again as he sold off his $400 million stake in Challenger Financial Services Group. He sold off more than 122 million shares, liquidating almost $1 billion worth of assets in the past month including his $441 million stake in online advertising company, Seek, and $50 million from the sale of his Park Street corporate headquarters in Sydney Australia. It is thought that the needed cash would help stave a hostile take over of Consolidated Media by Kerry Stokes' Seven Network. Losses in the casino empire have added some pressure to the billionaire's cash flow.

IG Markets analyst Ben Potter, said, "He obviously isn't going to let Consolidated Media go easily," adding, "It could be a takeover battle."

Consolidated Media holds key numbers in several strategic pay-TV assets including 25 per cent of Foxtel and 50 per cent of Premier Media Group, vital parts of Mr Packer's portfolio because they complement and enhance the value of some of his gambling businesses such as Betfair. Analysts think that Mr. Packer now has sufficient funds to counter any hostile moves from Mr Stokes and may even be poised to mount his own bid to buy out the company. News of the sale of Consolidated Media fuelled a surge in the share price which went from 22 or 7 per cent to $3.35 as investors laid bets on a bidding war erupting between the two billionaires. The identity of the buyer of the 21 per cent stake in Challenger was not confirmed, although it is speculated that Macquarie and Commonwealth were logical candidates.