Shufflemaster pulls out of Ongame deal
- Thread starter jetset
- Start date
- Joined
- Jun 30, 1998
- Location
- Bierland
Any idea why?
No explanation at this point:
SHOCK WITHDRAWAL FROM ONGAME SALE BY SHUFFLE MASTER (Update)
Reasons as yet unclear for unexpected withdrawal from Ongame acquisition deal.
In March this year the US casino equipment supplier Shuffle Master proudly announced that it had inked a Euro 19.5 million agreement to purchase Ongame Network, Ltd., a 25-brand online poker network owned by Bwin Interactive.
Just this month executives at Bally Technologies, Shuffle Master and Ongame Networks were publicly 'thrilled' at the prospect of jointly developing a poker and iGaming platform that would insert Ongame's poker content interface onto Bally's iGaming platform.
Today (Wednesday) that dream was shattered by a terse stock exchange announcement from Bwin.Party digital entertainment that the deal was off, and that other potential purchasers were again being approached.
No reasons for the withdrawal were given.
The Bwin.Party advisory notes that the withdrawal is by mutual agreement.
"The sale of surplus assets, including Ongame, remains a core part of Bwin.party’s strategy," the notification reiterates "Bwin.party is re-engaging with other third parties that have expressed an interest in acquiring Ongame. Bwin.party will make a further announcement as and when appropriate."
SHOCK WITHDRAWAL FROM ONGAME SALE BY SHUFFLE MASTER (Update)
Reasons as yet unclear for unexpected withdrawal from Ongame acquisition deal.
In March this year the US casino equipment supplier Shuffle Master proudly announced that it had inked a Euro 19.5 million agreement to purchase Ongame Network, Ltd., a 25-brand online poker network owned by Bwin Interactive.
Just this month executives at Bally Technologies, Shuffle Master and Ongame Networks were publicly 'thrilled' at the prospect of jointly developing a poker and iGaming platform that would insert Ongame's poker content interface onto Bally's iGaming platform.
Today (Wednesday) that dream was shattered by a terse stock exchange announcement from Bwin.Party digital entertainment that the deal was off, and that other potential purchasers were again being approached.
No reasons for the withdrawal were given.
The Bwin.Party advisory notes that the withdrawal is by mutual agreement.
"The sale of surplus assets, including Ongame, remains a core part of Bwin.party’s strategy," the notification reiterates "Bwin.party is re-engaging with other third parties that have expressed an interest in acquiring Ongame. Bwin.party will make a further announcement as and when appropriate."
Here's a little more detail on the reason:
Shuffle Master Inc’s chief executive officer, Gavin Isaacs provided more insight into the withdrawal through a statement saying : "It has become evident to us that Ongame's operations post-acquisition will not achieve the near-term results we initially expected and will require a larger ongoing investment than anticipated."
"Although we are disappointed in the outcome, after thorough due diligence we believe this is the right thing to do for our Company and our shareholders. We will continue to pursue opportunities to achieve our growth objectives in the online space, including leveraging and protecting our strong intellectual property and brands, and will investigate all prospects – both organic and acquisitive – that make strategic and financial sense," Isaacs added.
The company said it would continue to invest in its own content platform while considering other options for providing a B2B online poker product consistent with its other online offerings from web, social and mobile applications.
There was no mention of the Bally/Shuffle Master/Ongame online poker deal announced earlier this month.
Shuffle Master Inc’s chief executive officer, Gavin Isaacs provided more insight into the withdrawal through a statement saying : "It has become evident to us that Ongame's operations post-acquisition will not achieve the near-term results we initially expected and will require a larger ongoing investment than anticipated."
"Although we are disappointed in the outcome, after thorough due diligence we believe this is the right thing to do for our Company and our shareholders. We will continue to pursue opportunities to achieve our growth objectives in the online space, including leveraging and protecting our strong intellectual property and brands, and will investigate all prospects – both organic and acquisitive – that make strategic and financial sense," Isaacs added.
The company said it would continue to invest in its own content platform while considering other options for providing a B2B online poker product consistent with its other online offerings from web, social and mobile applications.
There was no mention of the Bally/Shuffle Master/Ongame online poker deal announced earlier this month.
