On 7th July 2015 it was revealed by Financial Times that Amaya Gaming who are the parent company of both Full Tilt and PokerStars, bid £900 million bid to buy bwin.party – a move predicted by PokerNews in mid-May. Amaya announced that they were to join forces with sports betting and gaming site GVC Holdings. The latter is the parent company of Betboo, CasinoClub and Sportingbet.
A spokesperson from GVC explained to The Daily Telegraph that discussions were ongoing and that they could not comment on any details at present. Bwin.party was not available for comment.
Negotiations are said to have been under way since approximately November 2014, which was when FT reporters Bryce Elder and Paul Murphy announced that there were advanced negotiations between bwin.party and another party; details would be revealed later.
Shortly after this information was made public by Financial Times, there came confirmation from bwin.party. Commenting on the speculation regarding the future of bwin.party, the stated that preliminary discussions were under way with several interested parties and would take a decision based on what would be best for shareholders.
If the bid is successful, it will allow Amaya to break into the US market for online poker, becoming a giant in sports betting.
The expected acquisition will stop negotiations between bwin.party and 888holdings. Keeping options open, it is understood, but not yet confirmed, that the web giant who owns a number of successful online gaming and gambling ventures were also in negotiations to buy out bwin.party.
There was no discernible impact on the markets following the announcement; both bidders closed in the red at the close of trade on the day.
Amaya has been listed on both Toronto Stock Exchange and Nasdaq since 8th June closed the session on 7th July with stocks going dropping by 0.6% percent and 1.99% respectively. GVC Holdings fared a little worse; their stock dropped at the London Stock Exchange by 3.56 points in early trading on 8th July.
GVC’s drop was not solely down to this announcement; problems with the European markets fuelled by the Greek financial crisis was a factor, as was the crash of China’s stock market. Both concerns for international investors. Bwin.party also fared poorly at the LSE on Wednesday; share value dropped by 3.43 percent by 12:30.
Though the market has not yet responded well, industry analysts believe the takeover could be largely a positive one; it should also be noted that both Amaya and bwin.party are holding well.