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Title: Party and 888 to merge? Post by: TightEnd on October 30, 2006, 12:42:26 PM reports over the weekend suggest Party and 888 are discussing a merger
This potential move, whilst clearly defensive and mooted from a position of weakness, is perhaps an inevitable response to the US legislative changes Both businesses, being quoted, have significantly less flexibility in remaining open for US business than unquoted competitors and both need to re-establish scale. The online business is one in which scale is important and both need to cover their fixed costs and then spend rapidly to establish a player base in Asia and other new territories and so will PStars, FTP etc etc so a good time to be a poker player based in the Far East I expect a lot more of this consolidation, allied to second/third tier sites disappearing, as the market turns on a 24 month view from the current amorphous mass of sites to a far more oligopolistic situation where the remaining competitors create the conditions where acceptable returns can be had by the bigger players. Title: Re: Party and 888 to merge? Post by: tikay on October 30, 2006, 12:49:28 PM reports over the weekend suggest Party and 888 are discussing a merger This potential move, whilst clearly defensive and mooted from a position of weakness, is perhaps an inevitable response to the US legislative changes Both businesses, being quoted, have significantly less flexibility in remaining open for US business than unquoted competitors and both need to re-establish scale. The online business is one in which scale is important and both need to cover their fixed costs and then spend rapidly to establish a player base in Asia and other new territories and so will PStars, FTP etc etc so a good time to be a poker player based in the Far East I expect a lot more of this consolidation, allied to second/third tier sites disappearing, as the market turns on a 24 month view from the current amorphous mass of sites to a far more oligopolistic situation where the remaining competitors create the conditions where acceptable returns can be had by the bigger players. Wow! LOVE that word. "oligopolistic". Title: Re: Party and 888 to merge? Post by: TightEnd on October 30, 2006, 12:51:37 PM its a lovely word
sadly not one I get to use that much, but all the rage in economics academic circles in about 1990! Title: Re: Party and 888 to merge? Post by: Sheriff Fatman on October 30, 2006, 01:17:17 PM OMG - the site with the worst software and payout times in the industry could potentially merge with the site with the worst customer service in the industry.
I'm really looking forward to that one! Sheriff |