Party Gaming, which runs the reputed poker portal Party Poker, recently announced the final terms of its merger with Bwin, another gaming giant. The merger has been long anticipated by the poker industry who are waiting to see what inroad the newly merger enterprise will make. The merger is expected to be completed by the first quarter of the year 2011 and so far all those on board the two companies see nothing but opportunities for growth. This merger will create one of the world’s largest officially listed gaming businesses.
Norbert Teufelberger, the Co-CEO of Bwin appeared to be very optimistic about the merger and commented, “The online gaming industry is going through a phase of consolidation, making market players’ size and geographic diversification more crucial than ever. Our products and target markets complement one another perfectly, and we can continue to expand our technology lead in all key product segments: sports betting, poker, casino, bingo, and games.”
Both Bwin and Party Gaming have decided to keep their brand names, rather than opting for one of the two or going in for something totally new. The newly merged company will have a worldwide market and will be able to use the power of both its brands to push profits. The company will function under the brand name of digital entertainment plc. In the merger the shares have not been evenly divided and it would appear that Bwin has the majority. Shareholders of Bwin will be happy to know that the shares have been split 51.7 percent (for Bwin) and 48.3 percent (for Party Gaming).
Jim Ryan, who is the current CEO of Party Gaming will team up with Teufelberger and head the newly merged enterprise. Ryan sees this as a great business opportunity for expansion. “This is a transformational opportunity for both our companies to create the world’s largest listed online gaming business. With market-leading positions in poker, sports betting, casino, and games, the enlarged group will have a winning formula to exploit the growing online gaming market, supported by a strong balance sheet, significant cash flow generation, and a highly experienced management team,” he said.
Despite retaining their brands, the management will be headed under one umbrella and the new company will function as one unit. The newly joined enterprise will operate out of Gibraltar and is now listed on the London Stock Exchange. However, since the company is so large, Bwin will still hold on to its offices in Austria.

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