Online bingo site, Wink Bingo are about to be snapped up by 888 for an estimated £60million that is of course if reports in the media today are true. The decision by 888 to purchase Wink Bingo form the owners Daub Ltd is a strategic one according to Gigi Levy the Chief Executive of 888, which will allow them to gain more of a foothold in the very “lucrative” UK online bingo market. The report which was published by Reuters states that 888 will pay £11m up front with further cash released dependent on the company’s EBITDA to year end 31st March 2011.
888 have never given up on buying into UK market
Regular readers will remember our stories earlier in the year when there was much talk of 888 buying Foxy Bingo parent Cashcade. These negotiations finally fell through, with 888 deciding that the price being asked for Cashcade was prohibitive. Bingo Hideout readers will also remember that PartyGaming finally signed on the dotted line to acquire the Cashcade portfolio for a reported £95m. Clearly if the latest news is true then 888 did not give up on their hope of buying into the UK bingo market, although we will have to see how things develop.
Previous plan was for 888 to buy struggling bingo sites
Earlier articles regarding the prospect of 888 purchasing online bingo sites in the UK gave the impression that Mr Levy would only be interested in “smaller concerns that are maybe struggling during the economic crisis as they offered a better prospect for Return on Investment”. This plan would now seem not to be the case as Wink Bingo is doing very well with revenues reported as £15 million. The market is loving the prospect of 888 making a purchase of Wink Bingo with their share price currently up 1.1% to 112.8p. 888 of course have has many problems in the past with huge amounts of their revenue lost when the Unlawful Internet Gambling Enforcement Act was imposed in the US. 888 have said that the proposed ‘deal was dependent on certain factors, including obtaining the required consents’.