Poll results: Bwin.party will be forced to split
Overwhelming majority of respondents to this week's eGR poll believe operator will cut its losses and divide the business
Bwin.party will have to split up the business and sell-off its assets in order to optimise full shareholder value, according to a large majority of respondents to this week’s eGaming Review poll.
Following a disappointing Q2 trading update, an analyst note from Numis suggested the troubled operator could “crystallise value” should it decide to carve-up the business and strike deals with a number of possible suitors.
While bwin.party recently dismissed reports it had considered such a move, it has reportedly hired financial services firm Deutsche Bank to explore its options following the appointment of its new chairman Phillip Yea.
And with shareholders thought to be receptive to a potential break-up, some 83% of eGR readers believed the operator would progress with the sales of assets such as its unregulated market business, bingo brands and B2B entities such as Kalixa and Conspo/Sportsman.
It estimated the operator could raise as much as 1.8bn (£1.4bn), approximately double the firm’s current market cap by taking such a route.
However, despite pressure building both inside and outside of the company, just 17% of respondents thought the operator would hold firm as a combined entity and trust bwin.party CEO Norbert Teufelberger (pictured) to turn the ship around.