Flutter Share Spike Causes Speculation
The company is well known for being the parent company to Betfair, Paddy Power, and Sportsbet, all of which are immensely valuable. But no notable activity in any of these organisations seems to have caused the unprecedented price spike. The mystery quickly gave rise to rumours that a major acquisition was in the works. But no specifics were forthcoming, resulting in more questions than answers.
Biggest Spike Since 2015
Flutter Entertainment has seen incredible success in recent years, with primary focus in the United Kingdom and Australian markets. But the behemoth has also been making progress in the United States, spelling even more growth. But even this doesn’t account for the share spike. According to Bloomberg, the jump is the biggest the organisation has seen since August 2015. To put it another way; share trading was three times higher than the daily average of the previous three months. When asked about the situation, the company responded simply that there was no material reason that they knew of to cause the increase.
But this didn’t stop the rumour mill from spinning. Word quickly spread that the organisation was going to be bought out. This would be a major event for the gambling industry in the United Kingdom, and the world over. But no rumour mentioned which establishment was looking to make the purchase, casting doubt on credibility.
Industry Rife For Acquisitions
But some sort of acquisition, or merger, would make sense. Operators in the United Kingdom have come under strain as tougher regulations have come into play. This, and other factors such as marketing expense increases, resulted in a string of recent mergers. Paddy Power joined forces with Betfair, which gave birth to the Flutter Entertainment Group. GVC Holdings also snapped up Ladbrokes and Coral in another recent landmark development.
Flutter Entertainment has indeed been making strides in the United States, but this does not mean that some sort of merger or purchase is off the table. In fact many analysts are saying that it is likely. Though for the time being this is nothing but speculation, as the world waits to see of the price spike did have reason, or if it was nothing but a fluke anomaly.