Intertain Group Hope To Acquire Costa Bingo
Added On 4th June 2014
According to The Wall Street Journal Mandalay Media, the company who are behind Costa Bingo and it's sister sites, is potentially going to be acquired by The Intertain Group Limited. The deal, worth an initial £45 million subject to working capital adjustments is expected to go through once financing has been established.
John Kennedy FitzGerald, CEO of Intertain, explained to THE WSJ; "We are excited about the acquisition of Mandalay Media, which will add substantial free cash flow to our existing business" (Wall Street Journal). Intertain currently offers casino and poker games to its customers using the InterCasino and InterPoker brands so the acquisition of these bingo sites is a sensible move.
Although this announcement is not confirmation of the acquisition, if it does go through there will obviously be question marks over the futures of Costa Bingo, Sing Bingo, Fancy Bingo, City Bingo and Rio Bingo. Whilst the former is the most well known thanks to the endorsement of Mel B and massive advertising campaigns the remaining sites have failed to land any significant punches in the online market.
Acquisition also brings uncertainty and a period of instability. Will players get the same promotions? Will the new owners use the same platforms? Will the sites be left to run down? When 888 acquired the likes of Wink, Posh and Tasty many industry observers anticipated these brands would go on to bigger and better things. As is only Wink has really managed to stay competitive whilst the others have been left to tick along until someone decides what's best to do with them. If Costa Bingo followed suit following acquisition then that would be very disappointing.
For affiliates of Costa, Sing, City, Fancy and Rio it's also an uncertain time. Sometimes when a bingo brand is acquired the new owners decide they no longer wish to have affiliates. However, Intertain through Intercasino do run Interpartners so it may well be that they integrate their potential acquistion into that system. Of course this is all speculation - sadly we'll only know what's going to actually happen if and when the sale goes through.
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