CVC Price Rises 0.16% as Banijay Acquires Tipico Stake in $5.4 Billion Deal

French media conglomerate Banijay has announced its acquisition of a majority stake in sports betting firm Tipico from private equity group CVC, valuing the German company at €4.6 billion ($5.4 billion). The transaction will integrate Tipico with Banijay’s existing Betclic brand under a newly formed entity, Banijay Gaming. The deal is expected to create one of Europe’s largest online gaming operators, serving approximately 6.5 million players across more than 1,250 betting shops.

Banijay will initially hold 65% of the combined company, with plans to increase its stake to 72% via call options. CVC will retain a minority position. The deal, backed by €3 billion in financing, is expected to close in mid-2026 after regulatory approvals. Banijay has outlined expected annual cost synergies of up to €100 million within three years.

Banijay’s CEO François Riahi emphasized the strategic rationale behind the acquisition, stating the company is a natural consolidator in the entertainment and gaming industries. The transaction marks Banijay’s largest acquisition to date and aligns with its broader strategy of expanding beyond television into digital entertainment and betting. The new entity will operate under a unified brand and will be headquartered in Malta, where Tipico is currently based. Riahi also noted that the company will sell its stake in Bet-at-Home to address regulatory concerns and ensure compliance.

Technical indicators for CVC’s stock suggest a mixed outlook. While the 7-day trend shows a 1.15% increase, the 30-day and 1-year trends remain in negative territory. This divergence could signal a short-term bullish sentiment amid longer-term bearish pressure. Traders may be watching for signs of trend reversal or consolidation patterns that could indicate a potential breakout.

Backtest Hypothesis

The proposed backtest aims to assess the performance of a systematic trading strategy based on the technical indicators currently in play for CVC. The strategy would involve entering a long position when the 7-day moving average crosses above the 30-day moving average, with an exit trigger when the opposite occurs. A stop-loss would be set at a 10% drawdown from the entry point to manage risk. The test would measure profitability, win rate, and maximum drawdown over a historical period from 2022 to present. However, the current execution is limited due to the unavailability of precise price data for the CVCUSD ticker.