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Written by Mathias | Tuesday, September 7th, 2010
Recently Bwin and PartyGaming have announced that longtime rumors of a merger between the company are officially true. Both online gaming giants will come together to form the largest listed online gaming company in the world netting a worth of an estimated $4 billion. The merger will also create a unified corporation that will have the power to dominate Internet poker, casino, sportsbetting, and bingo across Europe, as well as be in the position to join in a regulated US market, should one ever develop.
Prior to the UIGEA fiasco, Party Poker was the leading online poker brand in the US and the entire world for that matter. Now they still hold a large global presence in online poker minus the US market. Bwin brings a very profitable online sportsbook to the deal.
The two company’s CEOs will Co-CEO the new corporation and a new Board of Directors will encompass half of Bwin and Party Gaming existing directors. Also, PartyGaming shareholders will hold 48.36% of shares, and Bwin will hold the other 51.64%, to be listed on the London Stock Exchange.
Jim Ryan, PartyGaming CEO, says, “This is a transformational opportunity for both our companies to create the world’s largest listed online gaming business. With market-leading positions in poker, sports betting, casino, and games (in particular bingo), the Enlarged Group will have a winning formula to exploit the growing online gaming market, supported by a strong balance sheet, significant cashflow generation and a highly experienced management team.”
Norbert Teufelberger, Bwin CEO also responds, “This merger of equals makes great strategic, operational and financial sense. We will be in pole position to capitalize on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry.”
The merger will be complete sometime by 2011 first quarter. The changes that will ensue in the online gaming industry as a result of the merger will be interesting to watch.
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Written by Mathias · Filed Under news · |
