News Corp silently discontinues investment in Betr

Publishing and broadcast giant News Corp has withdrawn its investment in Betr, the operator’s chairman, Matthew Tripp confirmed for The Australian Financial Review, after media outlets caught wind of the breakup and sought to figure out the details.

This is not an entirely surprising U-turn and comes eight months after News Corp said that it would be scaling back its investment into the promising betting upstart. Initially, News Corp ponied up AU$75m into the betting unicorn. Betr is an Australian betting company backed by Tripp, a prominent investor in the gaming company and it’s unrelated to eponymous Betr brand in the United States, which is backed by Jake Paul and Joey Levy’s homologue.

Tripp said that the company had performed well during the latest National Rugby League season and has been able to settle all bets, ending the event with a robust balance sheet. Tripp used the opportunity to confirm that News Corp’s support for the company has been withdrawn as of right now but said that the initial stages of the company’s rollout were shored up by the media giant’s financial backbone.

The chairman also outlined a future in which Betr is going to pursue mergers and acquisitions in a bid to grow more aggressively. "We’re now in a position where we are focused on growth and getting to scale – with our eyes fixed firmly on M&A opportunities in a market that is becoming more challenging," Tripp explained.

Betr faced some financial challenges after the company demonstrated its derring-do by offering hefty promotional offers which focused on the Penrith Panthers winning their third consecutive title, offering a 100-1 payouttocustomers. This marketing charm offensive proved a success with sports fans and bettors, but it also showed the risks of over promotion, as Betr was hit with a fine from the Liquor and Gaming NSW, which added financial pressure to the company.

Briefly, Betr was said to be struggling to shift money around to cover the promotional payout, but it was fully able to pay the due AU$40m in payments to punters who successfully predicted the outcome of the NRL and that the Panthers would indeed seal their third consecutive title. News about the divestment from Betr were first reported back in February and it has finally materialized.

The exact cause of the exit is not known, although it probably has to do with the AU$52m investment that News Corp has already set aside as a loss in the betting company as reported by The Sydney Morning Herald.

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