PartyGaming Announces Intended Merger with Bwin - 07-31-10

July 31 - In a move that is hailed as one of the greatest ventures in the history of online gambling, PartyGaming and bwin announced that they have signed a merger agreement.

The merger comes after months of negotiations and speculations.

According to the two groups, PartyGaming will retain 48.4% of the shares in the joint venture, while the Austrian bwin will become the major shareholder with a 51.6% stake.

"The enlarged group will have a winning formula to exploit the online gaming market, supported by a strong balance sheet, significant cashflow generation and a highly experienced management team," said the Chief Executive Officer of PartyGaming, Jim Ryan.

Ryan will share joint leadership of the company with the Chief Executive of bwin, Norbert Teufelberger.

"This business combination makes great strategic, operational and financial sense," said Teufelberger. "We will be in a pole position to capitalize on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry."

The new group will be based in Gibraltar and will be listed on the London Stock Exchange.

Shares in both groups jumped on the stock exchange following the news of the merger.

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