Party Gaming, 888, Bwin, Ladbrokes : Merger Talks Continue

Talks earlier in the week were of a PartyGaming and 888 merger, later in the week Party Gaming appeared to lose interest in the online gaming company, now Party Gaming appears to be interested in smaller bingo and casino Bwin entities, while Ladbrokes looks into obtaining 888.

Party Gaming and 888 are the two most notable London companies to be all but destroyed by the US passing of the UIGEA, however both companies are very anxious to rebuild their empires by consolidating, even if they don't consolidate with each other.

One thing holding back the consolidation of these companies is figuring out the worth of the businesses now that the new US law has taken most of their regular income.

Ladbrokes' interest in 888 has been expected by analysts because it was believed to be a logical step that they attain a strong online entity to match their land based empire. Ladbrokes has not yet confirmed that they have been in talks with 888, however a source has said, "we would be mad not to look at it," speaking of the availability of 888.

Party Gaming, meanwhile, laid off 40% of their employees in India on Friday and more layoffs are expected at their Gibralter and London bases.



2006-11-04