Party Gaming and Bwin announce merger
29 July 2010, Staff writer
Two of the online gambling industry's biggest players, PartyGaming and Bwin,
today announced that they will be merging to create a company incorporated in
Gibraltar, listed on the London Stock Exchange and worth over $3 billion based
on current market capitalizations.
The new company, yet to be named, will be the largest publicly listed online
gambling business with annual revenues of just under €700 million, and
will be well placed to take advantage of a liberalized and regulated US market
should lawmakers there go down that path.
Party Gaming's CEO Jim Ryan said of the merger, "With market leading
positions in poker, sports betting, casino and games (in particular bingo), the
enlarged group will have a winning formula to exploit the growing online
gambling market."
Party Gaming shareholders will get a 48.3% stake in the merged entity while
Bwin's investors get 51.6%, and the company's respective CEOs Jim Ryan and
Norbert Teufelberger will become joint CEOs.
Investors clearly liked the news with shares in both company's rising around
20% on the days trade.
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