What the Amalgamation of Bwin and Party Gaming does for the Online Poker Trade
The merger of the two gaming giants, Austria-based bwin and Party Poker of the UK, has now produced the giant gaming institution Bwin.Party Digital Entertainment. They first declared that they intended to merge in July, 2010. When the transaction began, bwin share holders got 52% of the shares of the joint group. Jim Ryan of Party Poker took over as company CEO and Norbert Teufelberger from bwin took over as the other CEO.
Having merged, they now have reached the top position in sports betting, poker and other games such as bingo. Their special positioning has given them the advantage of having been able to have the run of the market and cash in a lot of money. They grew very powerful in the entertainment arena and are looking forward to taking over the entire US market in online poker.
With the merger, they hope that they will reach the top position in online poker games and also in all casino games. The two companies are by themselves experts in the market and their combined effort will surely bring them to the top.
The merged company has huge expectations of expanding the Party Poker trademark in Europe. Bwin was a division of the Ongame Network. However, now that they have merged with Party Poker, they are expecting to establish the largest online poker room on the globe. They are also aware of the fact that they do not have an opponent who can really confront them.
In the smaller language area, the new fusion of bwin and Party Poker is looking forward to saving on the customer service costs. Party Poker could use the bookmaking strengths of bwin and also their M&A, in the sports book vertically. Besides, bwin will not have vertically to build up their own casino.
The risk factor has been reduced by the merger because there is no amalgamation of supply or assembly lines. Since they are operating from different countries, the two international companies have different operations. If you consider the staff, you will find that they are very young, with different cultures, and will not find it difficult to make adjustments. The only test before them is that they should try to keep from falling prey to the ravenousness and unscrupulous tendencies of today’s business world.
The merger of the two companies brought about a positive reaction from the stock market. This is seen as a very astute move by all the investors and analysts, mutually to enhance their chances. If the winning take of 17 % by bwin and 20 % by Party Poker on the first day is taken as a yardstick, the future prospects are indeed promising.
Mergers have good and bad points. With the merger of bwin and Party Poker, the poker industry would go through a tumultuous change. The smaller players may be sadly washed out. The risk factor being nil you can be sure that the poker industry will grow rapidly. The joint experience of the two CEOs will surely go a long way to add great value to world poker.
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Tags: bookmaking, Casino, entertainment, Gambling, gambling industry, online gambling, Online Poker, Poker, sports, sports betting
