CVC Shares Increase by 0.16% Following Banijay's $5.4 Billion Acquisition of Tipico Stake

French media giant Banijay has revealed it is acquiring a controlling interest in Tipico, a sports betting company, from private equity firm CVC. This deal values the German-based Tipico at €4.6 billion ($5.4 billion). Following the acquisition, Tipico will be merged with Banijay’s Betclic brand to form a new group called Banijay Gaming. This move is set to establish one of the largest online gaming operators in Europe, catering to around 6.5 million users and operating over 1,250 retail betting locations.

Initially, Banijay will own 65% of the merged business, with an option to boost its share to 72% through call options. CVC will continue to hold a minority stake. Supported by €3 billion in funding, the transaction is anticipated to finalize by mid-2026, pending regulatory clearance. Banijay projects that the merger could generate annual cost savings of up to €100 million within three years.

François Riahi, CEO of Banijay, highlighted the strategic importance of the acquisition, describing Banijay as a natural consolidator within the entertainment and gaming sectors. This represents Banijay’s most significant purchase so far and fits its broader ambition to expand from television into digital entertainment and betting. The combined company will operate under a single brand and will be based in Malta, Tipico’s current headquarters. Riahi also mentioned plans to divest Banijay’s interest in Bet-at-Home to address regulatory requirements and maintain compliance.

Technical analysis for CVC’s shares indicates a mixed scenario. The 7-day trend reflects a 1.15% gain, but both the 30-day and 1-year trends remain negative. This contrast may point to short-term optimism against a backdrop of longer-term downward pressure. Investors are likely monitoring for any signs of a trend shift or consolidation that could suggest a breakout.

Backtest Hypothesis

The suggested backtest intends to evaluate the effectiveness of a systematic trading approach using the current technical signals for CVC. The method would involve taking a long position when the 7-day moving average surpasses the 30-day moving average, and exiting when the reverse occurs. A stop-loss would be implemented at a 10% decline from the entry price to control risk. The backtest would analyze metrics such as profitability, win rate, and maximum drawdown from 2022 to the present. However, the test is currently limited by the lack of accurate price data for the CVCUSD ticker.