Unibet has completed the acquisition of the Bingo.com domain and its related European operations and customer base. The operator reached a deal with holding company Bingo.com Ltd for a total deal value of $8 million.
The $8 million deal will see Unibet pay Bingo.com Ltd $2 million in cash for its brand and operations. Bingo.com Ltd will further gain a redemption of Unibet Plc shares in the company, which are valued at $6 million.
With the sale of the Bingo.com domain and operations, Bingo.com Ltd has confirmed that it will change its operating name to Shoal Games Ltd. Bingo.com Ltd CEO Jason Williams stated that the company would solely focus on the development of its social gambling products.
Jason Williams commented on the sale of Bingo.com
“The online gambling industry as a whole is experiencing conditions of maturity where smaller firms are finding it increasingly difficult to compete. Bingo.com’s European gambling business, built with the www.bingo.com brand and URL, has therefore found it difficult to compete effectively with larger operators.”
“In response to these facts, the Bingo.com management team decided it was in the best interests of the Company to sell the online gambling business; the associated brand and URL and determined the offer negotiated with Unibet, the Company’s own online gambling partner and technology provider, was fair and the best offer available to the Company for those assets.”
The purchase of the Bingo.com domain sees Unibet Plc augment its bingo product inventory, adding to its European bingo and igaming brand Maria.com, who Unibet purchased for £55 million in 2008.