Could We See More Gaming Industry Mergers and Takeovers? Could We See More Gaming Industry Mergers and Takeovers?
kevin dooley, Creative Commons Attribution 2.0 License
Key Takeaways
  • When Amaya bought the Rational Group for $4.9 billion in a leveraged buy-out, investors and industry alike wondered what other deals could be on the horizon.
  • The flurry of corporate activity made investors consider whether companies such as bwin.party, 888, Betsson and Playtech could also “be in play.”
  • However, the chances of any such deals may be outside the control of the companies themselves or investors, and unlikely though it may sound, may depend on the prospects for junk, ZIRP, QE and the price of butter.
  • In his acquisition target of PokerStars and Full Tilt, and in his timing at a moment when money was staggeringly cheap, David Baazov may have found a golden window of opportunity. The window may not have closed completely, but the chances of any repetition have become slim.

When Amaya bought the Rational Group for $4.9 billion in a leveraged buy-out, investors and industry pundits alike wondered what other deals could be on the horizon.

There have been two other major deals this year involving gaming companies. GTECH bought International Game Technology (IGT) for $4.7 billion, and Scientific Games bought Bally for about $5.1 billion—including taking on the company’s existing debt.

The flurry of corporate activity made investors consider whether companies such as bwin.party, 888, Betsson and Playtech could also “be in play.”