PR: Bingo.com Sale Reported | DomainInvesting.com
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PR: Bingo.com Sale Reported

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In a deal that was announced via press release just before the end of 2014, the Bingo.com domain name and accompanying online community were sold by a company called Bingo.com, Ltd.  to a company called Unibet Group plc. “for total consideration of $8,000,000.  Bingo.com, Ltd. is a OTC traded company with a ticker symbol BNGOF.

The press release stated that “[t]he Company is receiving cash consideration of $2,000,000 and redemption of the 15,000,000 common shares of the Company, which are held by Unibet, at a price of $0.40 per share.

The press release shared some information about the current state of the business and some of the rationale for the sale:

“The online gambling industry as a whole is experiencing conditions of maturity where smaller firms are finding it increasingly difficult to compete,” said Jason Williams, Bingo.com’s CEO. “Bingo.com’s European gambling business, built with the www.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.”

I think Bingo.com is an excellent domain name and brand name. I was not aware of the Bingo.com brand, but like all keyword descriptive domain names like this one, it sounds familiar to me. Back in 2010, there was an unrelated press release about the company’s acquisition of the Bingo.com domain name and ongoing payments.

Because the Bingo.com domain name was sold as an operating business, it will not be listed as an independent domain name sale, although it would have been the largest sale of the year had it been a deal for the domain name only.

You can read more about this sale and information about the companies involved in the deal by reviewing the press release found on CNN Money.


About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.


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Comments (4)

    Mike

    Congratulation to buyer and seller. Happy new year!

    December 31st, 2014 at 7:55 pm

    AS

    There is a long (several years) relationship between Unibet and Bingo.com, so it is really no surprise that Unibet decided to acquire the domain and brand.

    December 31st, 2014 at 9:08 pm

    Icy Kites

    I a lot of bingo.com stock in about 1999. About 6 months later they did a reverse stock split and I lost almost everything.

    Turns out I did not do my research very well. I found out they were a company based out of Canada which as many people know is famous place for creating companies, issuing stock, and then stealing from investors.

    January 2nd, 2015 at 9:49 am

    Andrea Paladini

    IMHO this is another deal in which the actual price is way lower than what it appears.
    The seller, Bingo.com, Ltd. (BNGOF), is a small loss-making OTC stock, based in Anguilla, British West Indies, with very little revenues, cash resources and equity.
    The redemption of 15 mln stock, done at a “fictitious”, discretionary pre-agreed price of 0.40$, has no impact on EPS, since the company has no earnings.
    There is a very little (+0.01$) impact on BVPS, same shareholders equity, lower nr of shares outstanding.
    Basically Unibet gave back to Bingo.com 15 mln of their stocks overpricing them in this transaction.
    Please note that Bingo.com equity, pre-deal, was just 3.6 mln $, which means 0.05$ per share.
    And if the company keeps the same cash burn rate it showed during last quarters, in 3 years its equity will drop to zero …
    IMHO the non-cash 6 mln $ part of the deal is heavily misleading, since those stocks are worth next to nothing … just a few $ cents at best.
    There was no 8 mln $ all-cash deal simply because Unibet knows that assets they were purchasing are not worth that much …

    The funny thing is that in Sept 2014 Bingo.com closed a private placement, raising 700k $ at a price per share of 0.70$ … good luck to the buyers … lol 😀

    @ Icy Kites: yes, you are correct, reverse stock splits can be used to squeeze out and destroy minorities … that’s why many “opaque” companies use them …

    January 2nd, 2015 at 2:04 pm

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