GGB is committed to providing updated news and analysis on our weekly news site,

Major Merger Online

PartyGaming and bwin will create online gaming's largest company

The new year will finally see the consummation of the merger between bwin Interactive Entertainment AG and PartyGaming, which will create the largest publicly listed online gaming company. Together, the joined company will have unaudited net revenues of €696.2 million, EBITDA of €193.7 million and profit after tax of €99.4 million.

The combined company will be named digital entertainment plc. Current bwin shareholders will own 51.7 percent of the shares, PartyGaming shareholders 48.3 percent.

Norbert Teufelberger, co-CEO of bwin, says the merger of the two online gaming giants will produce results immediately.

“The online gaming industry is going through a phase of consolidation, making market players’ size and geographic diversification more crucial than ever,” he says.

Like PartyGaming, will have its headquarters in Gibraltar and be listed on the London Stock Exchange. In addition to its strong B2C business, the company plans to expand into B2B and B2G services.

“Our many years of online know-how, healthy balance sheet, and one of the largest pools of poker liquidity in any regulated market will make us an attractive business partner,” says Teufelberger, who will head up the company with Jim Ryan, PartyGaming’s CEO.

The merger is expected to be completed in the first quarter of 2011.

As if to confirm Teufelberger’s consolidation prediction, and Ladbrokes are reportedly discussing a merger. Although 888 has lost some of its luster over the last several years, Ladbrokes could use the platform to make its online presences stronger. But because 888 has not reached an agreement with the U.S. on prosecution over UIGEA violations, as bwin and PartyGaming have done, it’s unclear how that would affect a potential merger.

    Recent Feature Articles

  • Diverse Experiences Deliver

    Aristocrat’s journey to the top of the slot industry

  • The Giant Awakens

    With citizens who are known to be some of Asia’s most prolific gamblers, Thailand has emerged as Asia’s next gaming opportunity

  • Responsible Gaming: All Together Now

    Voices from the American Gaming Association’s Responsible Gaming Month on the importance of responsible gaming and how the casino industry is handling the issue.

  • Global Games 2022

    The world’s game-makers prepare to wow attendees with the first unrestricted, fully international Global Gaming Expo since 2019

  • Testing, Testing, Testing

    Want to know whether a product, promotion or event will succeed even before it happens? Market research is the answer, but it has to be more nuanced than it has in the past