Speculation continues around a possible Bwin/PartyGaming merger after PartyGaming’s strong fourth quarter results. Bwin and PartyGaming are two of the biggest and most recognizable names in the online gambling industry. A merger of this magnitude would set forth big changes and a precedence for any future deals. Bwin is the largest publicly listed egaming company at a market cap around €1.4 billion. PartyGaming is listed at £1.1 billion. PartyGaming chief executive Jim Ryan warned that a merger this complex is subject to many variables.
A merger might spur other industry transforming deals with big names like 888, Sportingbet, Unibet, Ladbrokes and poker networks looking for the scale, reach and liquidity to compete. PartyGaming bought Gamebookers in 2006 but has been looking for a sports betting platform for years. The company’s mission is to be in the top three of its four main verticals. Purchasing bingo company Cashcade last year was a major step toward that.
The merger would also help PartyGaming’s position as the third largest poker business. Even so, it would give them a combined 8,200 average cash players, which remains behind Full Tilt in second place at 16,600 players. Bwin has been on the move. Its OnGame network combined with the B2B push would complement PartyGaming. Bwin has the higher valuation so it would make sense for the company to be the senior partner in any merger. But, speculation is still brewing as to who would head up the new entity and if Bwin co-founder Norbert Teufelberger or Manfred Bodner would leave as part of the deal.