In November 2014, Bwin.party announced it was in talks with several parties, which could result in an offer for the online gaming company. On September 4, 2015, Bwin agreed to a buyout offer from GVC Holdings for $1.7 billion. However, Bwin’s acceptance of GVC’s offer is subject to scrutiny as it withdrew an accepted an offer from 888 Holdings for $1.4 billion in July 2015 despite being preferred by some of its investors. The deal with GVC is projected to have savings of about $139 million per year by the end of 2017, while the deal with 888 had projected savings of $70 million. The merger will have repercussions for employees as both companies had a combined 3,100 employees at the end of last year. The merging of these companies will create a sports betting heavyweight in an industry where companies are consolidating due to the rise of online betting as well as increased regulation and taxation.
Bwin has some of the world’s biggest online gaming brands including Partypoker, Foxy Bingo, and partycasino while GVC has enjoyed success with brands such as Sportingbet and Casino Club. GVC hopes the merger with Bwin will result in technology which will result in a large increase of mobile subscribers with the rise of online betting. Furthermore, GVC could expand into parts of Asia and Africa where Bwin has gained notoriety with internationally recognized football brands. “According to PwC’s projections, the global casino gaming revenue across the U.S., Europe, the Middle East, Africa, Asia Pacific, Latin America, and Canada will grow at a 9.2% compound annual rate during the next five years, rising to $182.8 billion in 2015 from $117.6 billion in 2010.”
Mulier, Thomas & Jarvis, Paul, GVC trumps 888 to buy Bwin.party for about $1.7 billion, Bloomberg Business (Sept. 4, 2015, 4:54am CDT), http://www.bloomberg.com/news/articles/2015-09-04/gvc-agrees-to-buy-bwin-party-for-about-1-7-billion-beating-888
Maidment, Neil & Agnihotri, Aastha, GVC trumps 888 to clinch deal for Bwin, Reuters (Sept. 4, 2015, 11:35am EDT), http://www.reuters.com/article/2015/09/04/us-bwin-party-m-a-gvc-shareholders-idUSKCN0R40KC20150904
Baba, Razak Musah, GVC wins race to acquire Bwin.party, Wall Street Journal (Sept. 4, 2015, 12:18pm EDT), http://www.wsj.com/articles/gvc-wins-race-to-acquire-bwin-party-1441355489