Betfair caused some surprise this week when the company announced the appointment of David Yu as chief executive and the resignation with immediate effect of executive chairman Sir Robert Horton and two other non-executive directors.
The move comes a matter of months after the departure of Stephen Hill as chief executive and the decision from the betting exchange to postpone indefinitely a proposed flotation on the London Stock Exchange.
Mark Davies, spokesperson for Betfair, suggested Sir Robert had felt leaving was the “right thing to do” and added the company was “comfortable with the way we are”.
However, an industry insider questioned the experience of Yu, suggesting he was “not a marketeer and not a financial guy”. Yu previously ran the technology division at Betfair before becoming chief operating officer in the wake of Hill’s departure.
“Yu has tremendous qualities, but he hasn’t run a company before,” added the source.
This week’s moves suggest the possibility of an initial public offering had moved further into the future with speculation growing that Betfair would be open to offers. However, as the source suggested: “Who would want it? Would anyone just want the technology? How does it fit in with traditional bookmakers?”
sorce: egr magazine
