PartyGaming and BWin merger talksBy: Harper Whitefield
The UK stock exchange listed gambling company PartyGaming (known for PartyCasino) is talking to the Australian betting operator Bwin about a possible merger. A merger between these companies would create a £2 billion internet gambling company.
Even though PartyGaming shares put the value of the company at £1 billion last week, the company was estimated to be worth around £5 in 2005. This was before the UIGEA came in and PartyGaming lost 90% of it’s players. In April this year PartyGaming agreed a settlement with the US department of justice and paid a £65 million fine to avoid prosecutions for illegaly offering online gambling in the United States.
The strength of Bwin is especially in the field of online sports betting. While PartyGaming’s market shares are big in Online Casino and Online Poker a merger between these could benefit both. Also because of a similar market value the merger is expected to become a merger of equals. PartyGaming took a small step towards sports betting when they acquired the company Gamebookers, this was a £91 million purchase.
PartyGaming needs to grow it’s business, it is in fierce competition with operators like PokerStars and Full Tilt Poker who still accept US players. This helped them take the market leading positions in online poker. Before the UIGEA in 2005 PartyPoker was the biggest internet poker company.
Even though this news was published by the both companies have not officially confirmed these merger talks.