Bwin Party Digital Could Be Preparing for Sale
Bwin.Party Digital Entertainment could be the next online gambling giant to consider a complete or partial sale. The company, which currently partners with Boyd Gaming and MGM Resorts International, reportedly met with Deutsche Bank representatives to discuss its options in a potential sale. Though Bwin hasn’t yet confirmed any sales plans, insider sources suggest that a decision could be made in the next two months.
Bwin could be considering a major sale following disappointing results and the drop in share value over recent times.
Bwin’s potential plans are not surprising considering the slower than expected start to online gambling in the US. Furthermore, with PokerStars arising as another threat thanks to its recent sale and plans for re-entering the US market it is not surprising that Bwin is considering a bold move.
In addition, the company is struggling to maintain or raise its share value and its stock has declined 25% this year alone. The previous year was also a struggle for Bwin with Martin Wiegold, Bwin’s CFO confirming that sales numbers were declining due to competitors and regulation difficulties in a number of markets.
Despite refusing to confirm any plans for sale, Bwin has certainly been undergoing some major changes. The company recently appointed a new chairman, Philip Yea, and has also planned for the retirement of three board members.
