Bingo.com Ltd. boss says Unibet deal is in 'best interests' of company

Bingo.com Ltd. boss says Unibet deal is in 'best interests' of company

Tuesday, January 6, 2015 Totally Gaming

Jason Williams, the chief executive of Bingo.com Ltd., expects the company to become even stronger after completing the sale of its Bingo.com URL and internet gambling community to online gaming operator Unibet

The deal is worth $8m (€6.7m) and includes an initial payment of $2m as well as a $6m sale price for Unibet’s former investment in Bingo.com Ltd. shares, as previously reported on TotallyGaming.com.

It has now been confirmed that Bingo.com Ltd. will be rebranded as Shoal Games Ltd. at some point before the end of this month.

In a statement issued to TotallyGaming.com, Williams said that the deal would enable Bingo.com Ltd. to focus on its flagship Trophy Bingo social casino game, which can be downloaded worldwide from the Apple App Store and Google Play store.

“The online gambling industry as a whole is experiencing conditions of maturity where smaller firms are finding it increasingly difficult to compete,” Williams said. 

“Bingo.com's European gambling business, built with the Bingo.com brand and URL, has therefore found it difficult to compete effectively with larger operators.

“In response to these facts, the Bingo.com management team decided it was in the best interests of the company to sell the online gambling business; the associated brand and URL and determined the offer negotiated with Unibet, the company's own online gambling partner and technology provider, was fair and the best offer available to the company for those assets.”

Williams also outlined how the cash would be spent and how the agreement would affect its service offering – focusing particularly with regard to Trophy Bingo.

“The $22m cash obtained from the sale of its online gambling business, in addition to the current cash on hand, will enable the company to continue to finance the development and marketing of Trophy Bingo,” Williams said.

“The sale to Unibet Group plc includes the Bingo.com brand, which is needed for the cash gambling business, however the company has built the Trophy Bingo game completely independent of the Bingo.com brand in its wholly owned subsidiary Shoal Media, Inc.

“Accordingly, the company has chosen to rename itself Shoal Games Ltd. to reflect the company's primary focus on social game development and publishing. Shoal Games Ltd. will remain an Anguillan public corporation, and continue to be listed on the OTCQB exchange.

“Whilst we will no longer trade under the name 'Bingo.com, Ltd.' or the symbol BNGOF, we believe that we will develop an even stronger company trading with the name Shoal Games Ltd.

“It is the company's intention to make Trophy Bingo one of the most popular and highest grossing social bingo games in the world. The ongoing live tuning and development efforts with Trophy Bingo have provided extremely satisfying results for the game's retention and monetisation metrics.

“The Trophy Bingo team is focused on releasing product updates and new features that will enhance the game's performance to the point where a significant marketing budget will be spent with the objective of moving Trophy Bingo into the upper ranks of the monetisation charts for both Apple and Google smartphones and tablets.”

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