Bwin.party Digital Entertainment Plc has announced it is close to selling its social gaming business and is in continuing merger talks with other parties. The Wall Street Journal reported that bwin will sell its Win.com business to newly launched RisingTideGames, co-founded by former Zynga Inc. executive Maytal Olsha. A stake in RisingTideGames would be the payoff, although RisingTideGames has yet to release any products and its valuation is simply speculation.
“We are in active discussions regarding the sale of Win.com, the group’s social gaming business and expect to make a further announcement shortly,” the Gibraltar-based company said in a statement. “The group is continuing its discussions with several parties regarding a variety of potential business combinations with a view to creating additional value for bwin.party.”
The company expanded into social gaming in May 2012 with a $50 million investment. Social games are similar to casino games such as blackjack and slot machines but are played on Facebook and mobile devices.
But losses on the social gaming business are expected to be about €7 million ($8.5 million) for the year, the company said in the statement. Bwin also anticipates a loss of €10 million on its online betting site in New Jersey.
Revenues for the year are projected to be in the range of €608 million to €612 million and its earnings before interest, taxes, depreciation and amortization margin to be 16 percent to 17 percent.
The amount won by the company, particularly in December, was exceptionally weak, Bwin said. Full-year results will be announced March 10.