bwin And Party Gaming Plan Global Merger

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Recently bwin and Party Gaming announced plans to merge their companies and create the largest online gaming group in existence. The bwin group of Austria and Party Gaming of Gibraltar present to shareholders this January. If successful, the  joint effort will be released in July under the shared brand name bwin.party Digital Entertainment plc. They will each keep their own core brands, but operations under the new co-management will be based in Gibraltar.

Although the merger will bring added strength and opportunities to the worldwide online gaming market, for now they will leave the United States looking in from the outside.  The Co-CEO of bwin, Norbert Teufelberger, said recently, ” Our many years of online know how, healthy balance sheet, and one of the largest pools of poker liquidity in any regulated market will make us an attractive business partner.”

The Shareholders of Party Gaming and bwin viewed a 478-page document outlining the blueprints of the merger. The joint venture would be traded on the London Stock Exchange. If the shareholders agree on the merger vote slotted for January 28th, each bwin stockholder would get 12.23 Party Gaming shares paid in GBP for each bwin share they hold.

The companies are interested in bringing the strengths and similarities of each together. The merger would be worth 99.4 million euros after tax, and unaudited assets of 1.27 billion euros after adjustments are complete for the 2009 fiscal year. All in all, consolidation of online poker companies appears to be on the rise. Teufelberger said recently, “The online gaming industry is going through a phase of consolidation, making market players’ size and and geographic diversification more crucial than ever.”

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Posted by Odessa Holtzen on Dec 29 2010. Filed under Online Poker News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.