A lot of big moves are going on in Europe as it relates to the gambling industry. Cherry Gaming AB maintains major offices in Stockholm, Sweden and the Isle of Malta. The company has just shook the foundation of the Nordic gaming world after announcing intentions to gain outright ownership of ComeOn Malta.
Recently, an €80 million deal was put forth that allowed Cherry Gaming to acquire 49% of ComeOn. The €80 million was a combination of shares and cash. Such a massive outlay would lead insiders to think Cherry Gaming would take a breather and see how business goes before making any further buy or sell decisions. Not so. The company has made a major move.
In a surprise decision, Cherry Gaming’s management team has announced an agreement has been reached to purchase all the remaining 51% stock in ComeOn for an additional €200 million. The logistics of the deal entail a mix of cash payments and stock transfers. Cherry Gaming clearly sees a massive return on investment in the future or else putting forth such funds would never occur. The deal is, obviously, quite a massive one. Cherry Gaming is a large company with 700 employees. So, the entity is primed to handle a solid expansion of interests and ownerships.
Gamblers who wish to take part in the best experience possible may be thrilled over the new deal. In acquiring ComeOn, Cherry Gaming has to deliver in the market. Special promotions and other customer-friendly incentives are sure to follow. Unless Cherry Gaming attracts customers, then the deal is not going to be worth it.
Gamblers have a lot of choices throughout Europe. The gaming industry is incredibly healthy. Since millions of people outside of Europe are able to play at online casinos, the industry gains a consistent international flow of commerce and capital. Access to a market does not make potential customers automatically into actual customers. Something has to be done to set a particular gaming venture apart from so many others who are in the same business. Cherry Gaming’s management is successful and experienced enough to know what needs to be done to succeed with ComeOn.
Cherry Gaming has a very optimistic outlook on future revenues. The feeling is Cherry Gaming is poised to become the third-largest of all the Nordic gaming entities. Such a prediction is very likely to come true as long no roadblocks to growth arise.
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