Another online gaming giant firm, Bwin.Party is on the verge of being bought by GVC Holdings for a reported £1Billion.
This comes on the backdrop of yet another merger which involved Britain based online exchange operator Betfair who joined forces with Paddy Power in a 5 Billion pound merger to from what would be considered the largest Online Gaming Group.
As things stand GVC is currently said to be working with Bwin.Party in order to enable the Bwin board to consider and evaluate the full £1 Billion tabled.
GVC’s offer comes in light of Bwin initially accepting an offer 888 Holdings worth £898m however only to reject it in favor of GVC’s improved offer with Bwin citing that GVC’s offer was far more fair.
Ironically earlier this year 888 Holding themselves were set to be bought online betting and gambling bookmakers William Hill with the takeover bid being eventually rejected.
So what is the reason which has Online Gambling Companies scrambling for mergers?
The decision behind all the merges and attempted merges can be attributed to companies seeking to reduce operating costs.
Stricter gambling regulations and laws have prompted online gambling companies to find solace in mergers as they are continually being exposed to stricter.
Should the deal go through Bwin.Party shareholders would receive 25 pence a share in cash and 0.231 of a share in the combined company for each share of Bwin.Party, and they would own 66.6 percent of the combined company.