Shares of bwin.party (Pwin), the online gambling powerhouse resulting from the merger of bwin and Party Gaming, have seen a record low during the past two weeks. Now the tide turned and the company’s shares jumped up 6.43% (to 112.50) after the emerging rumor of a possible takeover.
Online gambling news in United Kingdom learned that Steve Wynn’s cash flush Wynn Resort may be looking at bwin.party as the means for quick entry into the world online gaming market. Wynn could buy the troubled bwin.party for as high as 170p per share. Some analysts believe that acquisitions with the currents state of the US online gaming market are unlikely, up until there is some assurances that online gaming will be legal in America.
Back on the old continent, renowned gaming company, William Hill, operating under British gambling laws, was rumored to have interest in bwin.party as well. Yet the unstable situation behind Pwin could be a major factor to prevent William Hill from taking over the operator.
Ever since the merger of bwin and Party Gaming back in April 2011, the company’s shares lost 45 percent of their value. Amidst a variety of reasons behind the drop, the main factor most likely is the decision of German states to change the country’s gambling laws.
Some industry insiders say that if William Hill decides to purchase Pwin, the historic deal could make them one of the largest gaming operators on the planet. And it would be extremely difficult to compete with them, when it comes to operating online sportsbooks or online casinos in United Kingdom.
Analysts continue to voice their “buy” recommendations for Pwin shares. A research analyst with a renowned British investment bank gave Pwin shares a price target of 185p. The share prices may still rise considerably, in case the 2011 first half results of bwin.party, which are expected shortly, will be good enough.