Tom Waterhouse has sold his entire online betting operation to British bookmaker William Hill for just over $50 million.
Waterhouse made the announcement this morning, following negotiations yesterday involving his mother Gai, father Robbie, aunt Louise, legal counsel Lance Sacks from Clifford Chance and financial advisor Graham Keating.
He began negotiating with William Hill last month. According to the Australian Financial Review, Waterhouse was keen to remain invested and was seeking to offload a 50 per cent stake.
The company’s owners, including Tom and other Waterhouse family members, will receive $34 million upfront and offload another $6 million debt.
The AFR reports the deal was also subject to an earnout agreement worth up to an extra $70 million, payable subject to tomwaterhouse.com achieving $10 million to $30 million earnings before interest and tax over the coming 2½ years.
At one point, the business had been valued at $200 million, but was not profitable.
This year Waterhouse’s online operations have drawn negative publicity following a backlash against saturation advertising on free-to-air sport and his appearance at a very public inquiry involving allegations his trainer mother Gai knowingly ran an unfit horse in a Group 1 race at Randwick.
More to come
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