The merger of the giants! Partygaming merged with Bwin
The betting industry has been talking about the merger of the two giants for a long time. Both companies denied this. But they did it! The two giants of e-gambling have joined their forces! Let’s start from the beginning ....
Both companies had their own interest in the merger. Although Partygaming is a very prestigious global brand recently it had huge problems. The situation forced the company to limit and then even stop its activity in the U.S. market. American law banned providing gambling services in this state. Since Partygaming did not observe the new legislation, the U.S. government tried to punish the company by imposing a fine of $ 100 million. Partygaming was not impressed by such a penalty at all, but the penalty caused unexpected problems, share prices and financial situation in the U.S. market began to deteriorate.
Bwin found the poker partner
The merger with Partygaming was also beneficial for the bookmaker Bwin for two reasons. First, it is not a secret that the bets are the strength of Bwin, and poker, which is quite poor, is its weakness. The global giant bought Ongama Network, but did not get access to the U.S. market, and this is the market where Bwin wants to start providing its services. The merger with the well-known brand in the U.S. market is obvious, especially now when the U.S. government is thinking about the legalization of gambling in the network. Please note that PartyGaming has already bought a series of WTP, which, according to many experts, will lead to a comeback to the U.S. market.
Record transaction cost in the gambling market.
As it became known the total cost of the entire transaction is a record for the companies operating in the e-gaming industry and will total about $2.5 - 3 billion. According to the reliable sources the majority of the shares will be owned by Bwin bookmaker (51,64% of the shares). Partygaming will get 48.36%. Newly established company will soon make its debut on the London Stock Exchange. We wonder how other bookmakers will respond to such a step of Bwin?