Looking to diversify its business, News Corp (NWSA) has set its sights on the Australian gambling market. NWSA plans to launch an online sports betting platform in the country in a joint venture arrangement, according to a Wall Street Journal report. The Rupert Murdoch family-controlled News Corp operates newspapers, television, and digital media brands.
News Corp’s betting platform is tentatively named BetR. The goal is to launch it in time for Australia’s popular horse racing season that begins at the end of August.
News Corp’s Betting Partners
The Murdoch organization is teaming up with Tekkorp Capital, BetMakers Technology, and Matthew Tripp on the venture. Tripp previously worked for Australian betting firms SportsBet, CrownBet, and BetEasy.
Nevada-based Tekkorp Capital invests in and provides consulting services to gambling businesses. Its Tekkorp Digital Special Purpose Acquisition Company (SPAC) has raised $250 million to invest in the online gambling sector. BetMakers will provide technology for the News Corp-led betting platform, according to the report. News Corp plans to leverage its media network to promote the betting platform.
Why the Australian Gambling Market ?
Gambling is a popular pastime in Australia, with a study showing that about 35% of the country’s adults participate in gambling activities.
Online betting is becoming increasingly popular in the country. Sportsbet is the leading sports betting brand in Australia with a 50% market share. It collected $15.6 billion in wagers in 2021. If that represents half of the online sports betting segment, then News Corp would be targeting a roughly $31.2 billion market opportunity.
Wall Street’s Take
Consensus among analysts is a Strong Buy based on four Buys. The average News Corpo price target of $33.12 implies upside potential of 52.4% to current levels. Shares have declined 8.3% over the past six months.
TipRanks’ Stock Investors tool shows that investor sentiment is currently Very Positive on News Corp, with 49.1% of portfolios tracked by TipRanks increasing their exposure to NWSA stock over the past 30 days.
Key Takeaway for Investors
News Corp has identified a potentially lucrative market to target in Australia as part of its diversification efforts. It also has a powerful marketing tool in its media platforms. If the venture is successful, it could be a major catalyst for NWSA stock.
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