Industry downplays reports of Google bid for bwin.party
Hills CEO joins analysts in rubbishing Daily Mail speculation regarding imminent Google bid of 200p per share for operator
Bwin.party’s share price has risen more than 3% this morning on the back of speculation that Google is preparing to make an audacious bid to acquire the operator.
According to the Daily Mail, speculation in the City suggests the internet giant is weighing-up a takeover, with a 200p per share cash offer expected to be made to bwin.party ahead of the operator’s US launch in New Jersey later this year.
The move would come as somewhat as a surprise considering Google’s recent toughening of its stance on online gambling and its refusal to allow gambling apps in its Google Play store.
The sheer size of the rumoured bid would also raise eyebrows with bwin.party’s share price, which currently stands at 113.50p, little more than half of the 200p suggested offer.
When asked for comment, a spokesperson for bwin.party said: “We don’t comment on rumour and speculation.”
However, speaking to eGaming Review, a number of financial analysts rubbished the idea of a potential offer, while William Hill CEO Ralph Topping took to Twitter to call the reports “Alice in Wonderland” stuff.
Bwin.party recently launched its revamped PartyPoker product which it hopes will go some way to reversing its recent fortunes. Last month, the operator announced revenues for the six-month period ending 30 June 2013 fell year-on-year to 342.5m from 410m. EBITDA was also down, falling by roughly a third to 60.7m from 92.3m.