Party Gaming and Bwin have recently issued a joint statement which confirms long time rumours of the two companies merging. As they stand on their own both companies are giants, but with this merger it will form the largest listed online gaming companies with a net worth of approximately US$4 billion. This merger will effectively create a unified business to dominate the European internet poker, casino, bingo and sports betting and to be in position for a regulated market in the United States.
Party Gaming’s online poker presence is done through Party Poker which has been at the forefront on the online poker market as was by far the most dominate leader prior to all the US restrictions and UIEGA bring in place. Bwin’s most profitable and biggest product is their online sports book.
The CEO’s of each company will become Co-CEOs and have a board of directors which will be made up of half Party Gaming and half Bwin directors. Once this merger has taken place it has been said that the Party Gaming shareholders will own 48.36% and the bwin shareholders will own 51.64% and be listed on the London Stock Exchange.
CEO of Party Gaming, Jim Ryan said, “This is a transformational opportunity for both our companies to create the world’s largest listed online gaming business. 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 online gaming market, supported by a strong balance sheet, significant cashflow generation and a highly experienced management team.”
Co-CEO of bwin, Norbert Teufelberger said “This merger of equals makes great strategic, operational and financial sense. We will be in pole position to capitalise on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry.”
One thing that is for sure is when the merger is complete, which is said to happen by the first quarter of 2011, the online gaming world may be in for some of the biggest changes we have seen to date.
