In a move that could shake up the ranks of the online poker industry, gaming company BETandWIN is reportedly in takeover negotiations with Ongame, a software provider and owner of internet poker site Pokerroom.com. The two companies signed a memorandum of understanding this past week regarding the potential acquisition. If negotiations run successfully, and BETandWIN acquires Ongame's technology, as well as Pokerroom.com, BETandWIN would become one of the largest online gaming firms worldwide, second only to PartyGaming. The price of runner-up status in the online gambling business: a neat little €500 million (~$591 million).

Both companies would benefit from the takeover by gaining a surefire way of easily diversifying their product lines. BETandWIN was launched initially as a sportsbetting offering, but has since sought to break into casino and poker markets. Ongame, on the other hand, has thus far focused almost exclusively on poker, but has made clear that it intends to widen its scope.

Besides diversifying its product offerings, BETandWIN would effectively widen its reach globally by acquiring Ongame. BETandWIN's player base is located mostly in Western Europe and Russia; acquiring Ongame would help the company bolster its position in North America and the United Kingdom, the locales of most of Pokerroom.com's online poker players.

Ongame had been planning to float prior to the BETandWIN development. If takeover talks fall through between Ongame and the already publicly-listed BETandWIN, Ongame has said that it would continue with plans to float its shares.

Source:  Poker777 Staff

Saturday, 10 December 2005