888 says BINGO

[The Buzz]

Looks like 888.com bought up Bingo Business, which includes Binbgoballroom.com and UK-Bingo.net.

Acquisition of the Online Bingo Business of Globalcom Limited

888 Holdings plc ('888'), one of the world's most popular online gaming entertainment companies, announces today its acquisition of the online Bingo business of Globalcom Limited (the 'Bingo Business'), a privately owned company registered in Belize, by way of an asset acquisition for an all cash consideration of US$32.4 million (less amounts payable to customers). A further earn-out payment of up to US$11 million may be payable in cash 12 months from completion on the basis of actual performance during financial year 2007. The acquisition is expected to be earnings enhancing for 888 in the current financial year.

The Bingo Business operates its own leading network of 45 online bingo sites or 'skins' including Bingoballroom.com, UK-Bingo.net, Bingofabulous.com and Twofatladies.com. In addition it provides bingo solutions to business partners operating their own networks and other third party sites. These include some of the most prominent in the UK such as thinkbingo.com, thinkbingoplus.com and bingoscotland.com as well as mirrorbingo.com and foxybingo.com which are operated and owned respectively by Cashcade Ltd. In 2006, the Bingo Business generated turnover of US$11.3 million* (net of bonuses granted to customers) and net profit of US$5.6 million* with the majority of customers from the UK. The Bingo Business, which operates under a licence from Kahnawake, Canada, does not accept customers based in the US.

In addition to cross-selling opportunities and expansion of its product offering the acquisition extends 888's capabilities as a provider of gaming entertainment solutions to its business partners.

The consideration comprises two elements, a base acquisition price of US$32.4 million (less amounts payable to customers) and an earn-out with an additional deferred payment of up to US$11 million. The base consideration is broken down as follows:

* US$10.8 million, initial consideration, payable at completion
* US$5.4 million (less amounts payable to customers) payable 90 days from
completion; and
* The balance, payable on the first anniversary of completion the acquisition

In addition to the base consideration an agreed earn-out payment may result in further deferred cash payment to the vendor of up to US$11 million on the basis of actual performance during financial year 2007. This payment will be determined and made by the first anniversary of completion of the acquisition

Commenting on the acquisition, Gigi Levy, Chief Executive Officer of 888, said:
'The acquisition of the Bingo Business is an important step forward in delivering our strategy of diversifying our product offering and meeting our customer's needs. The Bingo Business is a well established market leader, highly cash generative and profitable business with proven scalable proprietary software. Bingo will be a valuable addition to our entertainment services, which we expect to provide excellent cross-selling opportunities for our expanding base of customers worldwide.'

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* Unaudited financials

[WinYourWayKyle]

Another example of conglomoration.

But, on a positive note, I wonder if 888.com is going to incorporate all these sites into their affiliate program. Cause right now, the 888.com affiliate programs is somewhat washed up due to the large number of affiliate that promote their online casinos and poker rooms.

It really would be awesome if they could incorpoate all the Bingo sites into their affiliate program, as it would get some new people interested in promoting their new sites, and they would be able to big an even bigger empire.

I am sure this would not happen for a while, as I am sure it would take a long time to incorporate the affiliate program into their current affiliate program, but this would be awesome for affiliates as well as 888.com