Amaya and 888 Place Takeover Bids for Bwin.Party
The worldwide online poker landscape could change dramatically in the coming weeks following the news that bwin.party is facing multiple takeover offers. Some of the largest names in gambling are involved in the proposed takeover with one potential suitor looking to tighten their grip on the internet gambling world.
Last week, the sports betting firm GVC Holdings made their initial play for the company in a reverse takeover attempt. Then over the weekend, news leaked that 888 Holdings joined stepped up with their own offer. This prompted GVC to pull out the big guns and teamed up with Amaya, Inc with an offer that could lead the company owning the largest online poker provider in Europe.
GVC First To Act But Approval Uncertain
Reuters reported on the first takeover offer by GVC Holdings Plc on Friday. The original deal equated to a reverse takeover attempt due to bwin’s size. The company is currently valued at around $1.15 billion, twice that of GVC.
The deal was reportedly worth around a billion pounds and a “very good deal for GVC” according to Panmure Gordon analyst Karl Burns. Burns also admitted that the deal would most likely fail.
888 Holdings Joins the Fray
International Business Times revealed over the weekend that 888 Holdings has contacted bwin with their own takeover attempt. According to a statement released by the company, “The board believes that there is significant industrial logic in a combination of 888 and bwin.party, benefiting both companies and all shareholders and accordingly, has submitted a proposal regarding the acquisition.”
Bwin wasted little time reacting to the news stating that, “The board and its advisers are conducting a detailed review of the proposals received to-date and will make a further announcement in due course, however there can be no certainty that these proposals will result in a transaction being completed.”
When All Else Fails, Throw Amaya’s Money at Them
On Monday, Reuters reported that GVC has now partnered with Amaya, Inc to attempt a direct takeover of bwin. According to the newest report, the deal is worth approximately €1.5 billion split between cash and GVC stock.
You will remember that Amaya purchased the parent company of PokerStars and Full Tilt for $4.9 billion. According to some reports, the current deal for bwin.party would see the company sliced up with online poker and casino going to Amaya and the remainder going to GVC.
Will an Amaya Purchase of Bwin Affect NJ Sites?
One of the biggest questions on the minds of iGaming analyst is what happens in New Jersey should Amaya take over bwin.party. It is well documented, the saga behind the licensing of PokerStars in the state. While the company claims that PokerStars will be granted approval by the fall, multiple “launch dates” have come and gone without any movement from the NJ DGE.
If Amaya takes over bwin.party, will that force the state to reconsider the license or will they continue to let them operate “business as usual.” The same potential problem would not exist for an 888 Holdings takeover since they are already licensed in every state currently offering legal online poker. Visit PlayNJ.com to see a full list of iGaming providers in New Jersey.
Of course, if Amaya is close to receiving approval for PokerStars, they could just apply to have bwin.party added to their license. Bwin.party is currently partnered with the Borgata in Atlantic City and there’s little reason to believe that partnership would change.
However, an Amaya owned bwin could propose problems in other states. Since Amaya owns PokerStars, some states could seek to block bwin from a license due to the company owning “tainted assets.” California would obviously be the biggest trouble area due to their resistance to PokerStars. Clearly, Amaya and GVC do not seem concerned as they have made the bid but one has to wonder what roadblocks will lay ahead if they acquire the company.
