As the I-gaming industry hunkers down in the wake of the United States prohibition, several former industry titans are looking to rebuild their businesses through consolidation.
Amid recent staff shake-ups at PartyGaming and 888 subsidiaries, a stream of reports circulating last week conjectured various mergers and acquisitions (M&A) involving some variation of Ladbrokes, 888, PartyGaming or bwin. Las Vegas-based casino group MGM was also rumored to be trolling the market for beleaguered I-gaming companies.
After much speculation, Ladbrokes has for now emerged as the front-runner for 888. Last weekend the company responded to the influx of M&A related inquires, saying in a prepared statement Sunday that it was in the "early stages of reviewing a possible transaction involving 888." Still, Ladbrokes specified that no decision has been made as to whether any proposal will be made to 888.
888 CEO John Anderson's link with Ladbrokes has been widely ballyhooed, as he helmed the company for six years before joining 888.
New reports also surfaced this weekend regarding PartyGaming's alleged desire to acquire portions of bwin. Karin Klein, a spokeswoman for bwin, squashed the rumor, saying the two companies were merely en rapport regarding "lobbying together to show a united stance for the industry in the European Union." "[bwin is] not talking to PartyGaming about a sale," she said.
On the London Stock Exchange, Ladbrokes, 888 and PartyGaming have gone up in value amid the M&A talk. Ladbrokes shares closed today at 420.75p, up 10.75 (2.62 percent), while Party's shares closed at 28.75, up 1.25 (4.55 percent). 888 shares also climbed, closing at 120.50, up 10 (9.05 percent). bwin shares rose on the Vienna Stock Exchange, closing at 16.59 euros, up 4.01 percent.