Intertain bwin.party Rumors Get Stronger

Canada based companies that provide Internet gambling services are growing in a big way. This is despite the fact that the operations that they run are not licensed in Canada but in offshore online gambling jurisdictions. The purchase of the Rational Group by Amaya Gaming Group listed on the Toronto Stock Exchange is still the talk at online gambling forums. Now it is being speculated that another Canadian Company Intertain, also listed on Toronto, is considering the purchase of bwin.party.

Intertain is a big name in the Canada online gambling circles. It operates the online gambling sites InterCasino and InterPoker. InterCasino lays claim to being the oldest online casino in the world and offers a selection of games from the best software providers. Though bwin.party has not openly admitted it, it is a known secret that the company is for sale. When bwin and Party Gaming merged a few years back it was the biggest merger in online gambling history. Apparently that has not worked well. I t was earlier thought that Amaya could be the only one to pick up bwin.party. But now industry experts feel that Intertain will put in a bid. This is because both companies recently released trading statements that were similarly worded.

The Intertain statement read, “Strategic acquisitions have been and are one component of the company's growth strategy and, as such, Intertain regularly evaluates potential acquisition opportunities. From time to time, this process leads to discussions with potential acquisition targets.” Online gambling experts are not only keeping close tabs on this development but have already begun evaluation the acquisition.

Mergers and acquisitions are not new to either Intertain or bwin.party. GoldStar acquired Wagerlogic from Amaya last year and became Intertain. Then Intertain went on an acquisition spree. First it acquired Mandalay and its associated online gambling sites. Then it acquired Vera&John to access the Scandinavian online gambling market. These acquisitions have been handled responsibly and have been based on sound financial planning. Hopefully if the bwin.party acquisition goes through it will be based on the same steadfastness.

The current market cap for bwin.party is about CA$1.5 billion. Intertain would need to raise a lot of money to cover that amount. But because Intertain’s stock value is consistently rising it should be able to interest the investors. The crucial factor is that Intertain is still operating at a net loss, but its bottom line is improving. Is it worth the risk for Intertain at this time?

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