More firms expected to bid for Foxybingo
Posted by Gavin Smith on 28 May 2009 at 10:05
Two more companies are expected to submit bids for the online gaming firm which owns UK online hit Foxybingo.
According to the Times, PartyGaming and 888 Holdings are to be among the final bidders for Cashcade, which is part owned by Independent News & Media.
The sale is expected to total £70 million to £100 million and also to help Independent News, which last week secured a standstill agreement with its lenders.
The paper added that 888 and PartyGaming could have to battle with at least one other firm for the company, with Paddy Power also linked.
Earlier this month the Irish firm acquired a 51 per cent stake in Australian firm Sportsbet for AUS $48.5m (£23.7 million).
Foxybingo is the best-known name in the Cashcade stable, and is one of Britain's biggest bingo sites.
Cashcade also runs Getminted, which offers a wide range of games.
Earlier this year the company hired an investment bank to run an auction after running up gross gaming revenues of £45 million in 2008, producing earnings of £12.3 million before interest and tax.
Consolidation look set to be a trend in online gaming as firms look to cut their costs.
The Times has said PartyGaming has admitted it could be looking to buy companies after it reached a deal on a row with the Department of Justice in America.
PartyGaming could also end up sealing a tie up with GigaMedia, the company behind Everest Poker.
888 has also said it could go on a buy-up drive. The Times adds a recent statement read it was well-placed to “exploit merger and acquisition opportunities when they become available”.
Some see 888 as having an advantage in the battle to buy Cashcade as it is already associated with the firm.
Staff at Independent News & Media, which has a 17 per cent-strong stake in Cashcade, could be in for a windfall from the sale as workers and directors own about half of the Independent News shares.
