Bwin to Take Massive Step into Italian Poker Market
Written by Renee K | Friday, September 11th, 2009
The Austrian betting group, bwin confirmed this week that it is in the final stages of talks to acquire one of Italy’s leading online poker groups – Gioco Digitale. The move should take bwin deep into the heart of the Italian gaming market and give the group solid placing in the industry.
Bwin stocks rose high when news of the potential deal was released, and analysts commended the group’s move into the soon to be deregulated Italian gambling market. They will also be able to capture the Italian Mac poker share, despite it not being all that large.
Nobody is mentioning money at the moment, with all financial figures kept hush-hush until the bottom line is signed on the deal, but some market analysts estimate the price that bwin paid for Gioco Digitale would not be anything less than around €100 million.
The move is an important one for bwin, as it not only increases its market share in Italy, but also has the potential to boost the Austrian group’s earnings considerably.
“It would be a very good deal,” said market analyst James Hollins. “Even without cost and revenue synergies we would expect it to be earnings enhancing by more than 10 percent.”
Gioco Digitale opened up only last year but it has managed to retain the number one spot in the Italian tournament poker market for much of the time that the business has been running.
Last week, an Italian news publication reported that a private investor had purchased 10% of Gioco Digitale, ahead of a deal with bwin. The investor reportedly paid $3 million.
Bwin is seeking to obtain 100% ownership of the Italian poker company.
Rumors about a possible acquisition deal between the two entities have been flying for some time now, and yesterday bwin finally came out with a press release, confirming that principle terms had been reached on the deal.
The press release read: “The Board of bwin Interactive Entertainment AG (“bwin”) and Gioco Digitale S.p.A. (“Gioco Digitale”) and its shareholders have agreed on
principle terms for the acquisition of 100% of Gioco Digitale. The parties are in the final stages of working on a sales and purchase agreement, however, there can be no certainty that a final binding agreement on the transaction will be reached.
Further announcements will be made in due course.”
Check Out Other Related Articles
· Written by Renee K · Filed Under Poker Gossip · Comments Off
