War over Bwin.Party Digital Entertainment
A war is expected to land in Gibraltar over the right to acquire an online based gambling company known as Bwin.Party Digital Entertainment. The company owns two popular brands which are World Poker Tour and Party Poker. One of the firm that is bidding for the ownership of the online based gambling company is 888 Holdings Public Limited Company.
This is a gambling website company that allows for online casino games. These services are offered through 888casino among other sub-brands that allow their clients to download their games as well as play their games on the internet using their computers or their mobile devices. The other company involved in the bidding process and is set to give 888 Holdings Public Limited Company a run for its money is GVC Holdings. GVC is a company that provides business to consumer (B2C) and business to business (B2B) services to online gaming and sports betting markets under the industry’s steamroller William Hill Plc. which is looking to take over Sportingbet Plc. Both of these contenders have a vast knowledge and experience in the online gambling business. However, their entrance into this murky demesne is set to see them dig deep into their pockets as the bidding price keeps on stepping up.
About a month since, 888 Holdings was thought to have won the bidding war after making an offer of $1.4 Billion to acquire Bwin.Party Digital Entertainment from a miscellany of cash and stock. The company’s executives were caught on record confirming that the sale had happened. While expressing his joy about the deal, Jason Ader who is the company’s largest shareholder said he believed that 888 brought something tangible to the table since its management team can realize significant long-term synergy values for its shareholders. This however was never the case as days later this deal was termed to be insufficient by Bwin.Party Digital Entertainment to seal the deal. GVC Holdings then took advantage of this announcement and swung in with a 1.6 Billion offer proposal that also involved a mixture of cash and stock. But a few days ago GVC Holdings backed by Cerberus Capital Management, which is a U.S. private equity firm raised its bid to reassure Bwin.Party its commitment to its acquisition.
One of the things to be expected from this high takeover bloodbath between GVC Holdings and 888 holdings is 888 pushing for the deal with GVC to be termed null and void since the company had already entered into an agreement with Bwin.Party.