In one of the biggest deals in recent times IGT (International game technology) have accepted an offer of $825million for its DoubleDown casino brand. This is a huge deal that is sure to rock the Casino world!
The Las Vegas-based company has been in a bit of financial turmoil in recent years announcing that their long-term debt stands at around $7.8 billion (yes you read that correctly!) This sale is one of the many ways they are using to try and reduce this massive figure. IGT have stated that this deal “Establishes a new multi-year strategic partnership between IGT and DoubleU Games to provide innovative player experiences in the social Casino market worldwide”
This is a great deal for IGT who have made a $325million profit, they purchased DoubleDown in 2012 for $500million and have worked extremely hard on promoting and improving the brand. They have done an extremely good job of this their (IGT’s) executive said “since acquiring DoubleDown in 2012 IGT has helped it to grow into one of the largest and most successful brands in the North American Casino Market”
Although the deal has been approved by the board of directors at IGT there has not yet been a final approval, meaning that the deal is not yet guaranteed! IGT hope that it will be approved by the final quarter of 2017, and bearing in mind their current financial standings the sooner, the better!
If the deal stays as t is now DoubleU games and IGT will be in a game development and distribution agreement. This will mean that IGT’s Casino games are allowed to be offered on DoubleU social platforms; although they will have to pay a royalty fee.
This is a groundbreaking deal that could have positive implications for both companies in the long run. DoubleU is based in and usual trade in Korea (Korean stock exchange) may have to bring some of their business overseas although their headquarters will still remain in Seoul, South Korea. They believe they will be able to fully utilize IGT’s world-class slot content to make more profit and deliver their customers with an easier, and more exciting gambling experience! Ga-Ram Kim, the Chief Executive of DoubleU’s stated that “With this partnership, we are very excited and confident about DoubleU Games’ future as a global leader in Social Casino”
DoubleU is an extremely popular and highly rated gambling company that are only likely to grow further in the foreseeable future. Thanks for reading and feel free to check out some of our other articles and news in the gambling world!