Acquisition Fever As Ladbrokes Steps In
Published: Saturday, November 04, 2006 Online-Casinos.com
ACQUISITION FEVER MOUNTS AS LADBROKES STEPS IN
Giant British gambling group interested in 888.com, Party and Bwin
The Financial Times reports that the major British gambling group Ladbrokes has held preliminary talks with 888 Holdings and PartyGaming and is understood to be taking an interest in some of Austrian-based Bwin's operations as consolidation moves in the beleaguered online gambling industry gather pace.
Analysts have long believed Ladbrokes would make a take-over move in online gambling, with 888 and its casino brand seen as a strong match for the Ladbrokes onshore betting empire.
On Monday, 888 told the London Stock Exchange it had held "various preliminary discussions with third parties", a statement prompted by reports of talks between 888 and PartyGaming (see previous Online-Casinos.com/InfoPowa reports).
An industry source said PartyGaming was losing interest in 888 and was looking at strategic deals, with some of Bwin's empire and smaller-sized bingo and casino companies thought to be among its targets. Bwin said it was unaware of interest from PartyGaming.
It is believed that Ladbrokes has been in early talks with 888. The talks have been sanctioned by 888's Israeli founding families: Aharon Shaked and his brother, Avi, who have 51 per cent of the business; and the ben-Yitzkhak family, who hold 18 per cent.
888's chief executive is John Anderson, who had a long career at Ladbrokes and was executive director of the UK bookmaker for six years. The company declined to comment on the Ladbrokes interest at the weekend.
Ladbrokes declined to comment. But a source at Ladbrokes said while there had been no formal discussions, 888 was "one of the things we are looking at. We would be mad not to look at it."
PartyGaming, until the US debacle the world's leading online gambling company, on Friday laid off nearly 40 per cent of its workforce, making redundant 800 of the 1,750 staff who work on customer and technical support in Hyderabad, India (see previous Online-Casinos.com/InfoPowa reports). More job cuts are expected at its Gibraltar and London bases. 888.com's Random-Logic cut Israeli jobs earlier in the month.
A banking adviser to the sector said talks about consolidation were getting stronger, but companies were still trying to establish values. "These companies are in a new world. They have got to adjust their cost base. I wouldn't say deals are imminent, but talks are happening," the adviser said.
An old favorite brought back under a new software brand, U.S. friendly.
Use just one account to access poker, sports book and casino gaming.
Excellent number of high-quality games and great support.
Nice sign-up and on-going bonuses with fast cash withdrawal processing.
Good selection of fun games including some new, innovative games on offer.
Huge sign-up bonus with reasonable wagering requirements and an excellent look and feel.
New players receive an insane 200% bonus up to $1000 free on both their first and second deposit.
New players offered up to $888 free in sign up bonuses, a special bonus available for blackjack players as well.
