PartyPoker Set to Merge?
December 29, 2009
The weekend is a time where most online poker players spend hours of their time playing at the virtual tables of their chosen poker room but players at Party Poker and Bwin Poker were given the news that their sites could be set to merge into one poker room.
A merge between the two online poker rooms could see the value of the joint business hit $3 billion, a huge addition to the online poker community.
Initial reports have indicated that PartyGaming Chief Executive Jim Ryan is leading the bid to merge the two companies after having spent time over the past summer weighing up if the merge would be a good move for both companies involved.
PartyGaming online poker division PartyPoker has been a step decline in profits over the last few years after removing themselves from the US based player market in line with the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) back in 2006 but the hit has only meant that their player base reduced from the US rather than worldwide, leaving the brand still one of the biggest online poker rooms on the internet.
Bwin is better known for their betting area of internet based gambling and so a merge between the two companies would mean that they both have alot to offer each other after the PartyGaming owned PartyBet seemed to flop on release.
A spokesman for Bwin told media that the company is not involved in any advanced talks with PartyGaming at the present moment, issuing a statement that said “We are always talking to everyone, because we believe that there will be more consolidation in the sector. (But) we are not in any advanced talks, including with PartyGaming.”
The news of the merger has also lead to the shares of both companies raise in price, with many people looking to buy into the two companies before any deal is conducted in the hope that they will see a good return of investment.
PartyGaming shares saw an increase of more than 4% with Bwin stock also seeing an increase of 2.5% since the news was broken into the international media.
Bwin have been in the news already about a possible merge with another big name gambling company with the stories linking the firm with a merge with 888.com.
At the present moment the news seems to be nothing but rumors but with the PartyGaming company already making steps to improve its business within the online gambling industry, acquiring both the rights to the World Poker Tour (WPT) and capturing the bingo company Cashcade, its thought that they will be looking to capture the Bwin signature in order to place themselves into the biggest names within the online gambling brands in the world.
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