The recent acquisition by Unibet is the online operations of Bingo.com. The deal was valued at $8 million and includes all assets related to the firm, customer bases and their operation in the European market.
The new deal
As far as financial aspects of the deal are concerned; there is $2 million in cash and the rest are in the form of company share redemption by Unibet. After the sale, the new name of the company has been decided as ‘Shoal Games Ltd.’
Reasons for the sale
The sale of Bingo.com seems like a planned strategy to survive in the competitive gaming market. It has been increasingly difficult for smaller gambling companies to thrive or even survive with the big players in the gambling business.
Big companies like Unibet have been acquiring profitable smaller firms to consolidate and expand their businesses. Ever since mobile gaming took off and tablets and other handy devices have been introduced in the market, online gambling industry has seen a complete turnaround. New and existing businesses are focusing on new gambling products and businesses.
The deal seems like a good idea on the part of CEO of Bingo Jason Williams, and the company management to accept the sale offer from Unibet. As it is they have been focussing on developing new products for social gambling for quite some now.
The money raised from this new deal will help fund the company’s future expansion plans. It has already launched Trophy Bingo, which is not a part of Bingo.com. The company now plans to focus on developing the venture and add more money into it. It is a social bingo product and the idea is to have a place for bingo without the regulations of the gambling industry. Therefore it is free and non-gambling bingo product. Now it is up to Unibet to make profits from Bingo.com.