888 to buy Foxy

A recent article in Reuters stated that 888 are to buy Foxy, well the parent company, Cashcade and that 888 were in talks with 5 companies about acquisitions and one of those were reported to be CashCade. Furthermore the report stated that of the 5 companies 888 were looking to acquire, negotiations were in “advance stages”. In eGaming Review today Gigi Levy, Chief Executive for 888, categorically dismissed this and all speculation that a deal is about to take place seeing 888 buy Foxy (Cashcade).

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Independent News and Media currently hold a 20% shareholding in Cashcade, the parent company of Foxy Bingo, Think Bingo, Cheeky Bingo, Think Bingo Cosy and Bingo Scotland and is reported to be looking to raise funds to repay a 200 million Euro debt.  Cashcade is reported by eGaming Review to be worth between £70 million and £100 million and the INM is said to have a specific clause attached to its stakeholding that could see a sale forced.

Gigi Levy did not however deny that CashCade are one of the 5 companies that 888 are interested in but stated that the “advanced stages” mentioned in Reuters was for a completely different company and the Foxy interest from 888 was just that, interest and as yet 888 are not to buy Foxy (Cashcade).

From a bingo players’ perspective, whatever deal comes off and if 888 are to buy Foxy (CashCade), are we about to see another big shake up to the industry? Should Cashcade be forced to sell are we going to be forced to watch as the site fails because currently Foxy Bingo has to be one of the best online bingo sites available. If we lose the brains behind the outfit and 888 do buy Foxy (Cashcade) are we going to see a market that is predominately run by 888?

However, as with all major financial deals, whoever chooses to buy Cashcade and the Foxy Bingo brand will no doubt have a few clauses in the contract requiring that the talent that keeps the brands at the top of their game would have to be retained and we may well see the site reach even headier heights with a clause to double the revenue!

6th May 2009