Online gaming firm bwin.party may have had a rough few years financially, but that certainly is not stopping its rivals from lining up to ask for its hand. This week, bwin.party has acknowledged not one, but two takeover bids that would consolidate the top of the online poker market.
On Monday, the company announced that it has, in fact, received a purchase offer from 888 Holdings. 888 releases a statement about the deal, posted on both bwin.party’s and 888’s websites as follows:
The Board of 888 (the “Board”) has noted the recent press speculation concerning a possible offer for bwin.party by 888 and RNS announcement by bwin.party. The Board believes that there is significant industrial logic in a combination of 888 and bwin.party, benefiting both companies and all shareholders and accordingly, has submitted a proposal regarding the acquisition of the entire issued and to be issued share capital of bwin.party for consideration comprising cash and 888 shares.
Due to the size of the proposed transaction, it would require, inter alia, the approval of 888 shareholders. 888 shareholders representing approximately 59% of 888’s share capital have irrevocably committed, subject to customary conditions, to vote in favour of the proposed transaction.
There can be no certainty that the submission of this proposal will lead to the Company being selected as the proposed acquirer of bwin.party or, in turn, completing a transaction. A further update will be provided in due course.
This would have a fairly significant effect on the online poker market, as according to PokerScout.com, 888poker is currently second in the industry with 2,100 cash game players, while bwin.party’s PartyPoker is seventh with 1,200 players. The combined traffic, even factoring in overlapping customers, would still be number two to PokerStars, but would have much larger gap on the field.
A consolidated Party/888 would also essentially hold a monopoly in the New Jersey online poker market. The combined WSOP/888 network leads New Jersey with 170 players (while WSOP and 888 are operated by different companies, they both use 888’s software) and the Party Borgata Network is in the second spot with 130.
But 888 is not bwin.party’s only suitor. Yesterday, the company also acknowledged that GVC Holdings PLC, in partnership with Amaya Gaming, is also on the prowl. GVC is not a household name, but it does own a number of online gaming brands, most notably Sportingbet. GVC, though, is too small to handle the purchase on its own, so it has brought in Amaya Gaming to help finance a reportedly €1.5 billion reverse takeover of bwin.party.
As part of the deal, if it went through, Amaya would get PartyPoker and possibly have the option to acquire other assets later. A statement from GVC is as follows:
GVC Holdings PLC (AIM:GVC), a leading online sports betting and gaming group, notes recent press speculation. As announced on 15 May 2015, GVC has submitted a proposal with a view to the Group acquiring the entire issued and to be issued share capital of bwin.party digital entertainment plc (“bwin.party”). GVC confirms that the execution of this proposal would be jointly financed by GVC and Amaya, Inc. (“Amaya”). Amaya as at the close of business on 15 May 2015 had a market value of approximately CAD $4.31 billion and is the Toronto Stock Exchange listed owner of gaming and related consumer businesses, with brands including PokerStars, Full Tilt and the European Poker Tour.
There can be no certainty that the submission of this proposal will lead to the Company’s proposal being selected as a proposed acquirer of bwin.party or, in turn, completing an acquisition. Further updates will be provided in due course.
Amaya Gaming owns both PokerStars and Full Tilt Poker.
