Will Bwin go for the money?
The bidding for Bwin.party is about to be closed in the coming days and the situation is dramatic as the negotiations are reaching the climax. Main contenders in the battle are 888 and GVC partnered with Amaya Group and even though 888 seemed to have the upper hand, according to Bwin’s announcement last week GVC are steps away from finalizing the offer.
GVC Ready To Take Over
Last week Bwin confirmed that GVC in partnership with Poker Stars owners, Canadian giant, Amaya Group, have made an offer of £906.5m in cash and paper, which comes down to 110p per share, 45p out of which should be the cash part. GVC CEO Kenneth Alexander pointed out the success they had with Sportingbet acquisition and added that the “the potential combination of GVC and bwin.party would result in substantial financial and operating synergies and represent an excellent opportunity for both GVC and bwin.party shareholders.” In their official announcement Bwin confirmed that they are considering the proposal and working towards its finalization but they also stated that nothing is official yet, thus allowing some space for the other contender, 888, to react.
888 Not Giving Up
Operators of a major poker site and online casino gaming, 888 Holding believe that they can still win the battle for Bwin. In May this year they announced their intentions towards Bwin.party convinced that the combination of two parties would bring mutual benefit. They approached with a number of over €1 billion but GVC and Amaya spoiled their plans by bidding higher than that. Now, they still have some chance to close this deal, but they will not try to outbid the rivals. Reportedly, their argument will be the stronger synergy between business and the technology 888 already provides to some of Bwin’s businesses. The final decision by Bwin board remains to be seen in the coming days.
Bwin.Party was created in 2011 when Bwin, which offers sports betting, was merged with PartyGaming, which operates Online Casinos and Online Poker sites including PartyPoker. Despite being one of the leading online gambling operators they have seen a revenue decrease for the third year in a row which is the most likely reason for the decision to put Bwin.Party up for sale.