A recent article from Bloomberg suggests that Churchill Downs Inc. is considering selling its TwinSpires Racing division, as per individuals knowledgeable about the situation. TwinSpires holds a significant presence in the online horse racing wagering market, acting as the official betting associate for renowned events such as the Kentucky Derby. This development has generated enthusiasm among investors, leading to a rise in the company’s share value.
Speaking anonymously, sources disclosed that the Louisville-headquartered corporation has engaged advisors to assess potential acquirer interest in the platform. Churchill Downs has not provided any statement to Bloomberg regarding this matter.
Preliminary valuations indicate the unit could command a substantial $1.5 billion, but those close to the situation stress that no definitive choices have been reached, and Churchill Downs will maintain operations of TwinSpires for the present.
The company, with a market capitalization of $8.8 billion, experienced a climb in its stock price to $236.26 after the news of the potential TwinSpires divestiture.
Churchill Downs’ own financial reports from late October underscored the achievements of TwinSpires, with the horse racing sector recording a 56% year-on-year growth in adjusted EBITDA, reaching $31.2 million in the third quarter of 2021.
This upward trajectory is reflected in the platform’s betting volume, which saw a notable 31% increase in the third quarter of 2021 compared to the corresponding period in 2019.