Partygaming and Bwin to create poker monster
Partygaming and Bwin merger announcement shakes up online poker world
| by Alligator Blood |  July, 30th 2010 |
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Above: Partygaming and Bwin: It's on the cards
Partygaming and Bwin, two of the world's biggest poker companies, are to merge to form a £2billion giant that will dominate the online game for years to come.
The London-based Partygaming, which owns Party Poker, and Austrian firm Bwin will have combined revenues of £571 million-a-year and will be the planet's biggest poker, casino, sports betting and bingo group.
The move, which was announced on the same day that the US House Financial Services Committee moved a step closer to legalising online poker in America, paves the way for a wave of consolidation in the sector.
The new, enormous company has already said it will look to make further acquisitions.
There are currently 2,000 gaming websites operating in the UK and Europe. It will be 48.4% owned by PartyGaming and 51.6% by Bwin investors, and listed on the London Stock Exchange.
Bwin boss Norbert Teufelberger, who will be joint chief executive along with PartyGaming's Jim Ryan, said: "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."
The merger, which took six months to complete, saw PartyGaming's share price surge a record 33% at one stage yesterday. Bwin's shared also surged in Vienna before being suspended.
Investors in Bwin will receive 12.23 new Party-Gaming shares for every share they currently own.
It is thought the two companies plan a major assault on the American market when it re-opens for business - which could mean a raft of generous bonus offers for US players as the big sites compete for market share.
Founded in 1997, PartyGaming was the world's biggest online poker company, a mantle since taken by Pokerstars.
