PartyGaming And bwin To Merge In 2011
Tuesday, 3. August 2010

It would appear that the long rumored merger between bwin and PartyGaming were true. Confirmation of the merger was released in a press release on the online gaming site Gaming Intelligence.

The merger is expected to occur by the first quarter of 2011 and will result in the largest publicly traded conglomerate in the online gaming industry. Last year, Gaming Intelligence estimates that the two companies earned a combined $892 million with interests in most areas of the online gaming industry; including, sports betting, online casino, online poker and online bingo. While the merger is more or less closed, there are still some hurdles to navigate including the approval of a minimum of 75% of the stockholders of each company.

Jim Ryan, the CEO of PartyGaming, looks at the new group’s dominant position in the various facets of the online gaming industry will put them in an excellent position to “exploit the growing online market.” Norbert Teufelberger, the co-CEO of bwin, looks at the merger as making “great strategic, operational and financial sense.”

The new company will be led cooperatively by both Ryan and Teufelberger as co-CEOs with the board of directors of each company combined to one. PartyGaming’s Group Finance Director, Martin Weigold will enjoy the same role in the new company. The current co-CEO of bwin, Joachim Baca is to take the position of COO while the other co-CEO of bwin, Martin Bodner will become a non-executive member of the board of the new company.

The merger deal between bwin and PartyGaming may very well have been the worst kept secret in the online industry with rumors of the impending deal dating back to last year. The rumors seemed to fade until April of this year when the Austrian web site, Format, and Reuters India both made speculations as to the possibility.

With a dual net worth of $4 billion, the new PartyGaming/bwin company will be the largest publicly traded company in the online gaming industry. With the proposed merger, bwin will enjoy a 51.64% share of the new company and bwin’s stockholders will receive 12.23 shares of PartyGaming for each share of bwin that they own.

It should come as now small surprise that the news of the merger sent the stocks of both companies in an upward climb. bwin Interactive Entertainment is traded on the Vienna Stock Exchange and its shares surged through last Thursday to an increase of 17.88% on the day. PartyGaming is traded on the London Stock Exchange and its shares surged last Thursday to an increase of 20.43%.

Join bwin Poker today and get in on all of the action.