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PartyGaming to Merge with bwin

August 3, 2010

It’s now official; PartyGaming and bwin have confirmed they plan to merge. I this merger goes as planned, these two companies will form the world’s biggest online gambling conglomerate to be publicly traded. The $1.76 billion deal will break down with 48.4% of shares owned by PartyGaming shareholders, and the remaining 51.6% owned by bwin shareholders.

With bwin’s successful sportsbook and PartyGaming’s thriving casino and poker platforms, the two companies are believed to complement each other well to serve together as a strong brand.

Incorporated in Gibraltar, the new company will be co-run by CEO of bwin, Norbert Teufelberger and CEO of PartyGaming, Jim Ryan. However, the merger must be approved by 75% of both PartyGaming and bwin shareholders during 2011 first quarter shareholders meetings. Once approved, all assets and liabilities of bwin will be transferred to PartyGaming, and the new corporation will be incorporated in Gibraltar. bwin will then be removed from the Vienna Stock Exchange, and shares of the new combined company will be open for trade on London’s FTSE.

Teufelberger announced the merger in a statement that included the following: “The business combination makes great strategic, operational and financial sense.” He went on to explain, “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.”

Ryan also made a statement: “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 gaming market, supported by a strong balance sheet, significant cash flow generation and a highly experienced management team.”

This merger would in fact create a power brand that could possibly exert enough force within the industry to redefine online gambling as we know it today—for the better.

Written by Marcus · Filed Under Poker News 

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