The story, in context
- Offers, event schedules, software and operator availability mentioned in this report may have changed.
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Though both companies have refused comment, several news agencies are reporting that Party Gaming and Bwin are engaged in merger discussions.
The reports, published in the UK’s The Times as well as other publications, have helped increase the cost of both company’s shares, with a 2.5% increase for Party Gaming and 4.1% increase for Bwin, which is a gambling group based in Austria. If the merger is successful, it would create a nearly $4 billion online poker, casino and sports betting company.
Party Gaming has reportedly been looking for an opportunity to create a major sports betting platform for several years. It acquired Gamebookers in 2006 for more than $100 million; company officers have been open about the company’s determination to become one of the largest gambling platforms in the world.
According to James Hollins, who is in brokerage at Daniel Stewart, the Party Gaming-Bwin merger would be “compelling” and would make the resulting company a powerhouse capable of competing with poker sites like Full Tilt Poker (www.fulltiltpoker.com) and Poker Stars (www.pokerstars.com).
In November 2009, Party Gaming purchased the World Poker Tour, which many in the industry saw as an attempt to bring Party Gaming back to the United States in a big way. Chief Marketing Officer, Chris Welch, confirmed that notion when he was quoted as saying, “This is the first step to us returning to the United States.”
What has changed since this story was published?