The merger of the two gambling 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 shareholders 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.
There is an expectation that the merger will help them reach the pinnacle in online poker and casino games. Individually, both companies are experts in their own fields so their joined effort will surely carry them to the peak.
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.
This merger between Bwin and Party Poker will help them save costs on customer services, particularly in the smaller foreign language markets. Party Gaming could now use Bwin’s strong bookmaking. By this merger, Party Poker will now have an M&A in the sportsbook vertically, and bwin will not have to invest in building up a casino vertically.
Since no supply or assembly lines have to be merged, there will be almost no risk in the merger. They are two international companies and have diverse functioning since they are operating in different countries. When you come to the staff you will find that they are young, come from distinct backgrounds, and will have no problem when it comes to making lateral adjustments. The one great test before them is that they will have to make sure that they do not fall victim to cannibalistic tendencies and business models.
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 a win and 20 % by Party Poker on the first day is taken as a yardstick, the future prospects are indeed promising.
There will be good points and bad points in every merger. The smaller poker industry would definitely be influenced by the merger. Because there will be no risk, the merger could only cause an improvement in the poker industry. Besides all this, Pkv Games should be greatly rewarding to new players, and you can be sure that the amalgamation of Bwin and Party Poker will do a lot of good for the poker industry.