UK publicly listed portal operator Gaming Corporation has paid US$20m to buy gambling.com from Jersey-based Newbold Enterprises, almost five times what Newbold paid for the site just twelve months ago.
Newbold paid US$4.25m to acquire the site from its founder Graeme Levin in late 2003, and made significant changes to its operating model.
The firm stripped out most of its affiliate ads, introduced a proprietary pay-per-click-driven search engine and made significant staff and technology efficiency cuts.
However, the speed of the resale has surprised many in the industry and Tim Rosenberg, gambling.com’s managing director, said it was ahead of Newbold’s strategic goals.
“There was always an exit opportunity in mind, but not this soon,” Rosenberg said.
“We weren’t looking for an exit, and in terms of our day-to-day operations it’s not changed anything we are doing, albeit we are now going to have more resources,” he added.
The deal comprised US$15.3m in cash, with the remainder made up of Gaming Corporation shares subject to a six-month lock-in.
Rosenberg, who will be retained as managing director of gambling.com, said the site would now turn its attention to marketing the gambling.com brand.
The firm has strong revenues with a gross profit of US$759,857 for Q1 2005, but the true value to Gaming Corporation is its international user base.
The firm, which also owns the casino.co.uk domain, recently bought US- and Asian-focused gambling portal Got2Bet.com and is looking to expand beyond its core UK market.
source : egr magazine
