If reports in the Telegraph on Sunday are to be believed, then 888 Holdings are in negotiations with Cashcade with a view to purchase their assets which includes Foxy Bingo. There has already been interest from other prospective purchasers including PartyGaming, but as yet there have been no formal offers made. If an offer is put on the table to purchase Foxy Bingo it would be expected to be in the region of £100 million. Foxy Bingo is doing extremely well as are the rest of the Cashcade portfolio, with revenues for Cashcade reportedly up a massive 91% on the previous year’s turnover if reports of figures filed at Companies House are correct.
Of course this is in complete contrast to earlier reports where 888 Holdings Chief Executive Gigi Levy denied that there was any possibility of a purchase being on the cards. Mr Levy had hinted that he was looking at other smaller concerns that are maybe struggling during the economic crisis as they offered a better prospect for Return on Investment. This would now seem not to be the case.
Cashcade's loss could be 888's gain
From 888 Holding's perspective a purchase of Cashcade must be a logical step as not only do they supply the software for the sites which Cashcade owns including the ubiquitous Foxy Bingo but also Think Bingo and Get Minted, but a purchase of Foxy Bingo would also consolidate their gaming portfolio making them a force to be reckoned within the industry. Whether the prospective purchase of Foxy Bingo goes any further remains to be seen, Jeffries the Investment Bank hired to find a buyer also has another interested prospective purchaser Party Gaming as well as reported interest from some other big names.
The sale of Foxy Bingo has become necessary as Independent News & Media needs to divest itself of its assets to meet agreed repayment s of debts, and the company is said to own 20 per cent of the Cashcade Group. It has been reported that Independent News & Media made a loss of £225 million and was not in a good position to meet its agreed repayments of debts in the region of €1.3 billion unless further funds could be raised by selling assets reportedly to include The Independent, the Hindi newspaper title Dainik Jagran and the German website Verivox.