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Friday August 12,2011 : Network will lose up to 50 percent of players in sale
Market Analysts have put a modest valuation on the sale of the poker network according to a report from Dow Jones, this week, due to the shrinking of liquidity on completion of a deal.
Simon Holliday from H2 Gambling Capital said the terms of sale of OnGame will see previous bwin poker customers migrated to the Party Gaming network effectively taking up to 50 percent of the network's players.
Analysts believe the sale is likely to attract U.S. interest with little information on interest from local prospects such as Betfair and Sportingbet. James Hollins, an Evolution’s analyst believes market talk of interest from these two companies is way off the mark.
While Holliday believes U.S. interest from companies such as Bally and WMS is a possibility following the acquisition of Swedish poker platform Entraction by International Game Technology for a consideration of $115 million, Evolution's Hollings believes the remote possibility of U.S. authorities seeking redress for the company's operations prior to UIGEA will limit the number of interested U.S. buyers, although he adds "it's not an insurmountable issue".
Dow Jones reports that bwin.party digital entertainment has declined to comment on the current progress of the sale but continue to expect completion of the network disposal by year-end.
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