Major Online Gambling Group On The Sales Block?

Reports that Bwin.Party Digital Entertainment is considering the sale of all or some of its assets

The struggling European online gambling giant Bwin.Party Digital Entertainment is considering the sale of some or all of the company as part of a strategic review, two unidentified sources have told Bloomberg business news.

The Gibraltar-based company has reportedly hired Deutsche Bank AG to assist in its deliberations, and a decision is anticipated within the next two months.

Bwin.Party investors have seen the value of their shares plunge which, along with board changes and this, combined with mediocre results has triggered the review.

There are also fears that the ownership change at Rational Group could see Pokerstars reentering the US market, further eroding Bwin's position as a provider in that market (see previous InfoPowa reports).

Bwin stock, currently worth around 93 pence a share, has declined 25 percent this year alone, resulting in a market value of GBP 759 million.

In March this year CFO Martin Weigold reported that the company faced a difficult year in 2013, including a decline in sales due to regulatory and competitive challenges in a number of markets, and warned that Bwin.Party was considering the divestment of non-core and surplus assets (see previous InfoPowa report).

UPDATE: Bwin.Party issued a press statement Thursday morning advising as follows:

"The Board of bwin.party has noted the recent speculation in the media regarding a possible break-up or sale of the company.

"Since his appointment as Chairman last month, Philip Yea has been working with the executive management team on ways in which the Group can increase shareholder value, however we can confirm that there are no plans to break-up or sell the company."

Online Casino News Courtesy of Infopowa

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The man with the plan here at Casinomeister. Bryan Bailey has been running Casinomeister since its launch in June of 1998. He has watched the industry grow from its primeval stage to what it is now. The Meister has attended nearly 100 conferences in the past 20 years and has either been a speaker or a panel moderator for at least 60 events. He has always been an advocate of fairness and reason and is known to like German beer, a good Scotch, and astrophography.
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