Ongame Network Being SoldTuesday, October 2nd, 2012 by Ryan
It seems in the online poker world that there have been quite a few major moves happening with some of the different networks out there. Today it seems that we’ve had another move happen. Bwin.party originally had a deal set to sell the Ongame Network around three months ago, but things simply didn’t work out. While the last deal fell through, they are back at it with another new deal, as they have announced that there is a deal on the table that will sell the Ongame network to the Amaya Gaming Group Inc, that is worth around $32.2 million. The deal has a few different things attached to it though.
For starters, the deal between bwin.party and Amaya is going to be worth $19.3 million for starters, and this is going to be done when the deal is closed at the end of 2012. Now, if things with the United States and the legality of online poker work out within the next five years, then the Amaya Gaming Group will end up paying out an additional $12.9 million to bwin.party. That is a tentative number though, and the exact amount that will be paid out is going to depend on how many different states in the United States end up opting-in to the legislation and the number of US players that it includes.
If you’ve never heard of the Amaya Gaming Group, they are an electronic gaming provider, which offers a large range of different games. The basic idea behind Amaya currently is that they offer a wide range of casino games including things like blackjack, roulette, and slot machines. Currently though, they do not have any type of online poker, which is something that is going to be changing in the near future it seems. Obviously both sides are happy with the deal, and the two Co-CEOs of bwin.party, Jim Ryan and Norbert Teufelberger both stated that the sale “conforms to our strategy”. The CEO of Amaya, David Baazov stated that the acquisition of Ongame “bolsters Amaya Gaming’s product portfolio.”
Bwin originally made the purchase of the Ongame Network back in 2005. The deal was worth an incredible $765 million, and when the company merged with Party Gaming in 2011, they created bwin.party and decided that the Ongame Network wasn’t needed. It took a bit for them to find a buyer, and they looked for one for almost a year before they almost had a deal set with Shuffle Master. The deal was going to be for $20 million, but the company backed out of the deal this year.
While it certainly seems that things have been bouncing around with the Ongame Network for quite a while now, they may have found a good fit with their newest buyer who excels in the online casino world. They are looking to expand into the online poker world and keep things growing, and with the purchase of Ongame they are looking like it could be a strong move, especially if the United States is able to get online poker back.