PartyGaming, Bwin Announce Merger

Denise Milani

The Partygaming/Bwin merger will make the new group the Denise Milani's Boobs of online gambling.

More big news on the Internet gambling front.

On the heels of the House Finance Committee approving Barney Frank’s Internet Gambling bill, the UK’s PartyGaming and its biggest rival, the Austrian-based Bwin, have officially announced their plans to merge.

The new company is set to form in the first quarter of 2011 and will be listed on the London Stock Exchange. According to the Guardian, the group would be worth $3.3 bil at current market prices and make it the world’s biggest publicly-listed online gambling company.

The agreement gives Bwin a 51.6% stake in the new company compared to 48.4% for PartyGaming.

The two have been rumored to be considering the deal since January, right around the same time the unfortunately named Anurag Dikshit sold his remaining PartyGaming shares for £105m. Of note, PartyGaming’s Peerless Media owns the World Poker Tour.

For more on this including a complete analysis of how this will play out if/when PartyGaming returns to the US market, check out Kid Dynamite’s comments to this post below.

Kid Dynamite?

 

3 Responses

  1. Kid Dynamite

    July 29, 2010 3:29 pm, Reply

    hah. i’ve owned Party stock (US pinksheet: PYGMF) for a long time… before UIGEA i think.

    i thought the whole motivation behind Party’s settlements with the US a few years back was to make it so that they will be a frontrunner to get licensed if/when the US re-legalizes online poker. It’s not a given to me that the US will allow everyone to operate – so Party clearly wants to be in compliance and on the good side of the US. who knows – maybe they’ll allow everyone in the marketplace anyway, and Party needed to clear the table just to be able to compete.

    i’m not sure what the MGM/Harrahs of the world are doing about online poker, but if they had 1/10th of a brain they’d be working on a platform right now (hey guys – CALL ME – i’ll get involved! Chops – tell them to get in touch with me)

    the best part about the whole bwin-party deal is that the firms discussed it earlier in the year and released a statement a month ago that talks had “failed.” apparently not.

  2. Kevin Mathers

    August 3, 2010 12:04 pm, Reply

    Harrah’s has been running online gambling sites for several months in the UK:

    wsop.com
    caesarscasino.com
    caesarsbingo.com

  3. James

    August 20, 2010 3:08 am, Reply

    One thing is for sure, with the chance of a return to the US market this merger isn’t good news for poker stars or fulltilt.

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