£1bn Bidders for bwin.party

£1bn Bidders for bwin.party

Monday, 18 May 2015

GVC Holdings PLC, a sports betting and gaming company that controls Sportingbet, Casino Club and Betboo, has recently submitted a takeover bid for bwin.party Digital Entertainment PLC. Reportedly partnering with Amaya, GVC has made a bid for bwin.party's sports, casino and poker assets.

The ever-increasing pressure of the UK's new Point of Consumption Tax has forced a number of operators to consider consolidating and GVC has made it clear that it is keen to explore this strategy.

Despite being a smaller company than bwin.party, GVC has strong presence in Latin America and with a potential partnership with Amaya it would make it a formidable global operator if it's able to acquire bwin.party.

According to the latest insights, GVC would handle the casino and sportsbook side of any new deal, while Amaya would take control of bwin.party's poker assets. However, the bid is by no means an indication that a deal will take place.

In a note to the stock market following the proposal, a representative for GVC noted that nothing is final.

"There can be no certainty that the submission of this proposal will lead to the company being selected as a proposed acquirer of bwin.party or, in turn, completing an acquisition," read a statement to the London Stock Exchange by GVC.

In addition to this caution, GVC isn't alone in its interest. Earlier today it emerged that 888 has made a rival bid of £1 billion for bwin.party. Following speculation over the weekend, the online gaming giant confirmed the reports today it had proposed a cash and stock deal to take control of the company.

"There is significant industrial logic in a combination of 888 and Bwin.party, benefiting both companies and all shareholders," read a statement from 888.

After almost 12 months of being on the market, bwin.party now looks to have two serious bidders for its platform. Quite what this means for the industry is unclear. If Amaya's takeover for PokerStars is any indication of what's to come, then players can largely expect to see business as usual for the most part.

In broader sense, the deal could provide some much needed industry stabilization which will result in improved gaming conditions for everyone.

Tags: bwin.party, business, GVC Holdings, 888