Hot off the press - Party & Bwin merger - Internet Poker

Langerdang · 12-13-2009, 09:43 AM

http://business.timesonline.co.uk/to...cle6954515.ece

Quote:

PARTYGAMING, the online poker group, is in merger talks with Bwin, an Austrian rival, in a deal that could create a £2 billion internet gambling giant.

The two sides have been holding on-off talks since the summer. PartyGaming, led by chief executive Jim Ryan, is expected to be asked by the Takeover Panel to clarify the position before the market opens tomorrow morning.

A merger would mark another chapter in PartyGaming’s colourful history. Four years ago the group, which attracts 79m players a day, floated when the craze for internet poker was booming. It was given a value of £5 billion and its four founders raised almost £1 billion from the sale of shares.

The quartet were Vikrant Bhargava, a marketing expert, Anurag Dikshit, IT guru, and husband-and-wife team Russ de Leon and Ruth Parasol. The latter attracted press attention because of her former career running telephone sex lines.

America was the group’s biggest market, accounting for nearly 90% of its revenues. The company struggled to assemble a board and was forced to offer big share packages to attract people. Michael Jackson, the former chairman of Sage, the software group, was given a £1.5m fee to become chairman.

A year after floating, the company suffered a huge setback when America made internet gambling illegal. Groups including PartyGaming closed their American operations and lost huge amounts of revenue.

Speculation about consolidation in the online gaming sector has been rife in recent months. A tie-up between PartyGaming and Bwin would be logical given the former’s ambition to grow its presence in sports betting, an area where the Austrian group has particular strength.

PartyGaming, based in Gibraltar, is best known for offering poker and casino games. It seems likely that if the two businesses can agree a tie-up, the deal would be structured as a merger of equals.

One source cautioned that discussions were at an early stage and there was no certainty that a deal would be agreed. “Everyone in the industry is talking to everybody else,” said the source.

Shares in PartyGaming closed on Friday at 256Åp, valuing the business at £1 billion. Bwin, which is listed on the Vienna stock exchange, has a market value of €1.3 billion (£1.2 billion).

In April this year, Party Gaming agreed a settlement with America’s Department of Justice to ensure that it would not face prosecution over its activities in the United States. It agreed to pay $105m (£65m) as part of the arrangement.

Dikshit had previously made his own agreement with the department, arranging to pay $300m after pleading guilty last December to an online gambling charge. He sold the bulk of his remaining 28% stake in PartyGaming in October.

Analysts believe that gambling groups including London-listed 888 Holdings and Sportingbet as well as Sweden’s Unibet, have all been examining possible deals.

PLO Degen · 12-13-2009, 10:00 AM

Interesting, but I imagine they will still stay out of the US which is a beat.

B Rains · 07-29-2010, 06:14 AM

http://investegate.co.uk/Article.asp...7291103121505Q

Quagmyer · 07-29-2010, 06:30 AM

i believe this is just a proposal document?
wont be happening anytime soon, Id rather it not, and Party stay individual.

B Rains · 07-29-2010, 06:36 AM

Doubt they would call an investor relations call or send this info out to the market if it isn't going to happen. Both are listed companies, so have a responsibility to stop unfounded rumours.

1.01 - it's on.

Sounded Simple · 07-29-2010, 06:38 AM

Looks legit http://www.google.co.uk/finance?client=ob&q=LON:PRTY

Since bwin runs ongame could this mean a merge between the two poker clients?

hepzebah · 07-29-2010, 06:45 AM

It's happening.

God only knows what'll happen to the poker clients.

But they've announced it, so it'll have to happen quick.

Quagmyer · 07-29-2010, 06:46 AM

interesting. I play on Party regularly so I hope there will not be too many negative changes because of it

Tirppa · 07-29-2010, 07:11 AM

wow.. that would actually be pretty sick..

Tirppa · 07-29-2010, 07:14 AM

How long till ongame shuts down their pokernetwork? I mean it makes no sense to keep two and pay the upkeep of both networks and software developement.

Wiki · 07-29-2010, 07:16 AM

Quote:

Originally Posted by Tirppa

wow.. that would actually be pretty sick..

Would it be that bad?

OMGKaraScott · 07-29-2010, 07:19 AM

Quote:

Originally Posted by Tirppa

How long till ongame shuts down their pokernetwork? I mean it makes no sense to keep two and pay the upkeep of both networks and software developement.

Prob never, the new Essence-system is so complex that it can't be shut down and it will develope a consciousness of its own and continue to rule the world.

Tirppa · 07-29-2010, 07:20 AM

Quote:

Originally Posted by Wiki

Would it be that bad?

I mean sick in a good way.. the pokerboom is over for now.. or atleast in hiatus. And having too many networks and sites divides the player pool to few many smaller player pools. More regs playing together against fish and fish will go broke faster. With more players and more fish on fish action the money stays longer in circulation. (I think). I find this to be good news.

I just hope they go to party poker's software direction instead of ongame's.

Wiki · 07-29-2010, 07:50 AM

Quote:

Originally Posted by Tirppa

I mean sick in a good way..

Interesting word, that. You can use it in a sentence and unless there are clues from the context it's absolutely impossible to tell what is meant.

Quote:

the pokerboom is over for now.. or atleast in hiatus. And having too many networks and sites divides the player pool to few many smaller player pools. More regs playing together against fish and fish will go broke faster. With more players and more fish on fish action the money stays longer in circulation. (I think). I find this to be good news.

I just hope they go to party poker's software direction instead of ongame's.

One thing I notice from Pokerscout is that Ongame has virtually no LHE.

I'd agree that it would be better if they stuck to Party's software.

Of course, they could do the unthinkable and ask the players that use both what they think.

Tirppa · 07-29-2010, 07:59 AM

yeah LHE at ongame is pretty dead.. this merger could mean a third option for low-mid-stakes LHE-players. iPoker's LHE is pretty dead too. Also this bigger player pool could mean more action around the clock. Right now Stars is the only one that can offer a lhe around the clock at stakes above 2/4