Bwin and PartyGaming in mutual destruction dance!

Calvin Ayre
Calvin Ayre
May 15, 2010
20 Comments

MutualAssuredDestructionI have a well-placed source inside the ongoing negotiations between PartyGaming and Bwin to merge these two messy public companies into one über messy public company. The deal will be officially announced shortly and champagne corks will be popping all over the industry. This will not be the death of either of these poorly run and (at least in the case of Bwin) unprofitable businesses, but after two years of distraction and the loss of many of both companies’ top talents, what is left will not be as powerful in the industry as any of the existing entities are now on a standalone basis. I can understand why they feel like they must do something to stop what they perceive as the inevitable decrease in industry share for both these organizations, but merging seldom ever creates the value that the executives crave. Their real problem is that they have the wrong structure — they are public, but it is private companies that are destined to take over the industry.

I have published a number of articles stating my opinion of what the implications of such a merger would be for the rest of the industry. Bottom line is that the rest of the industry will benefit, because when two companies become one it’s like taking one competitor out of the market. The merger details will distract the new entity for two years or so, allowing other, more focused companies to grab market share. Additionally, talent and domain knowledge will be released from both organizations and these will be soaked up by aggressive and focused competitors. I was talking with Patrik Selin, CEO of Bodog Poker Network, who tells me he is also taking over Bodog Europe, making him the CEO of a group that will be growing aggressively in Europe in Sports, Casino and Poker. He is ecstatic at the opportunity to pick up a lot of the Bwin and Party Gaming talent. To that end, he wants it known that he is hiring aggressively in all three of his major channels right now, and he invites anyone let go in this merger, as well as anyone not happy with their situation at Party or Bwin to contact him directly about opportunities with Bodog Europe. He also wants to extend this offer to anyone currently working at any of the industry’s boring and restrictive public companies. After all, with its flexible private company structure and fun innovative culture, Bodog Europe is well known as the best place in the industry to work.

If you have any further information related to this story that you would like to share with us privately please click here.

Can't get enough CalvinAyre.com? Follow us on Twitter and Facebook, then you'll never miss out on the latest gaming industry news.

Share
Tags: Article, Bodog Europe, bwin partygaming merger
Views and opinions expressed are those of the Author and do not necessarily reflect those of CalvinAyre.com
  • DG

    Boring brands?They are strong European mainstream brands *a bit rusty for party, yep. Both top of minds. Why would private companies take over the market? Players are becoming more and more educated,looking for transparency, governments more aware. I love bodog, but we have never seen you outside the UK as well. Girls in bikinis and gambling and drinking and carrying on sound way to US targeted. Doesn't sound like responsible gambling too eh.

  • http://CalvinAyre.com Calvin Ayre

    maybe private companies won't take over the industry. But it happened in the US as I predicted and I am predicting it will happen again globally. the reason is the inherant strengths of being private….lower cost base, less executive distraction, faster reaction time to industry changes and less external forces interfering with your decision making. Oh ya….and WAY less chance of a retarded director forcing you to waste the company on a a merger. Did you click through to the KPMG study above…here is is again for you.

    http://www.riskworld.com/PressRel/1999/PR99a214…

    Nobody can say for sure, but for me the logic and history is convincing.

  • http://CalvinAyre.com Calvin Ayre

    If you read the article again you will see that bodogBrand.com is a domain and if you go there and read it its self explanatory….there is no reference to bodog brands so not sure what your point is on this.

  • http://CalvinAyre.com Calvin Ayre

    Just to touch on your other point. Its my personal opinion that being public forces you to be boring. The things that you do to give trust and confidence to financial analysts just have a way of making you lose your creative soul. This is my opinion. Some likely do not share this. My Grandfather thinks watching ducks fly overhead is exciting…to each their own. I prefer doing aerobatics in a Mig 29 however.

  • sri4u71

    Rubbish

    • http://CalvinAyre.com Calvin Ayre

      A man of few words I can see. Is it the merger that you think is rubbish, or my prediction of its success? If the first it would depend on if you are them or the rest of the industry….if the latter, Bodog Europe CEO Patrik Selin says he is already getting Party and Bwin resumes in…kind of early evidence of my predictions would you not say?

    • http://CalvinAyre.com Calvin Ayre

      Wait….its my opinion that being public makes you boring you are saying is rubbish. Love these guessing games. OK, feel free to point out a non-boring public company brand for me to review. Just running a public company takes the giggles out of you.

  • Pingback: Calvin Ayre sieht in Kürze Merger zwischen bwin und PartyGaming « Pokernews

  • http://CalvinAyre.com Calvin Ayre

    maybe private companies won't take over the industry. But it happened in the US as I predicted and I am predicting it will happen again globally. the reason is the inherant strengths of being private….lower cost base, less executive distraction, faster reaction time to industry changes and less external forces interfering with your decision making. Oh ya….and WAY less chance of a retarded director forcing you to waste the company on a a merger. Did you click through to the KPMG study above…here is is again for you.

    http://www.riskworld.com/PressRel/1999/PR99a214…

    Nobody can say for sure, but for me the logic and history is convincing.

  • http://CalvinAyre.com Calvin Ayre

    If you read the article again you will see that bodogBrand.com is a domain and if you go there and read it its self explanatory….there is no reference to bodog brands so not sure what your point is on this.

  • http://CalvinAyre.com Calvin Ayre

    Just to touch on your other point. Its my personal opinion that being public forces you to be boring. The things that you do to give trust and confidence to financial analysts just have a way of making you lose your creative soul. This is my opinion. Some likely do not share this. My Grandfather thinks watching ducks fly overhead is exciting…to each their own. I prefer doing aerobatics in a Mig 29 however.

  • sri4u71

    Rubbish

  • Morty

    Agreed, if marketing creativity is being held back by PLC's boards watching the share price then ultimately you suffer in a sector that moves as fast as gaming!

    Although both brands are “big” niether has a personality as all and their advetising constantly contradicts itself.

    No doubt the owners of Party don't care as they made their millions / billions in the float but i won't be buying shares going forward.

    • http://www.facebook.com/calvinayre Calvin Ayre

      I should have heeded my own advice here and shorted the stock…I would have been the biggest winnner in the entire deal based on stock prices now…Aug 2011.  

  • Pingback: Sore Bwinner: Bwin boss hopes UK bookies rot in jail

  • Pingback: PartyGaming and Bwin merger talks collapse

  • Pingback: Bwin/PartyGaming merger is great news… for its competitors

  • Pingback: One reason why CalvinAyre.com likes Bet365

  • Pingback: iGaming business news | First cracks appear at Pwin

  • Pingback: Bwin.Party Worth Less Than Either Company Pre-Merger | Online Gambling News