GVC Offers More for Online Gambling Firm bwin.party

Published Sunday, August 02, 2015 - Online-Casinos.com
GVC Offers More for Online Gambling Firm bwin.party

It is amazing how fast things can change in the online gambling industry. The recent proposed acquisition of  Bwin.Party Digital Entertainment has been a prime example of a bidding war that keeps rolling along. The two online gambling companies agreed a £898.3m ($1.4 Billion USD) deal less than a  few weeks ago.The cash offer was slightly less than the £900m offered by GVC Holdings/Amaya Gaming offer. Jason Ader a 6% stake owner of bwin was quoted as saying that 888 was by far the best buyer and ‘will realize significant long-term synergy value.’

The breaking up of bwin.party is not a favoured option by board directors which the GVC Amaya offer proposes. The 888 idea that the two companies could co-exist and become bigger and better was more to the liking of the board.

The new possible deal would also give 888 more traction in the American market.  888 is currently the only operator offering a fully regulated product in all three states: Delaware, Nevada and New Jersey. They will have even more potential in that market when they take over the partnership with The Borgata in Atlantic City.  

The reason for the GVC Amaya deal going south may be the regauled market split proposed. GVC deals in many unregulated jurisdictions while Amaya Gaming is only regulated. GVC is not giving up the bidding war with a new submission worth a billion £. It has parted ways with Amaya and has partnered with Cerberus Capital Management for the new funding source.

Even though Mr. Ader is only small stake holder venture capitalist he insists wants that to rise to 140p per share. The current 888 deal is worth 104.09p per share, and the revised GVC offer is 122.5p per share. It is obvious this bidding war is far from over and it will be interesting to watch as the deal develops.

 

 

 

 

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