Slots News

Back


Bally Technologies logo

The Bally Technologies takeover looks like it might now not go through after underwriting issues

A takeover deal by online gaming software developer Scientific Games of Las Vegas-based slots developer Bally Technologies worth an estimated $5.1 billion was thrown into doubt this week.

The multi-million dollar Bally acquisition is on the rocks after JP Morgan Chase and Co, Deutsche Bank, and Bank of America Corp failed to underwrite and sell a bridge loan worth $3.2 billion by the 3rd October deadline set by Scientific Games after failing to generate enough interest from potential investors.

This shortfall in investment has left Scientific Games still requiring $3.2 billion to fund the takeover deal. However, there was the consolation that the banks had managed to secure $2 billion worth of funds in separate loans to cover a percentage of the shortfall.

Unfortunately, that still leaves approximately $1 billion worth of funding left for Scientific Games to find before they can close the deal. News of this shortfall also reached shareholders and the price of shares in Scientific Games dropped by almost 7%.

Further details about the next stage of negotiations are expected to be announced shortly. If Scientific Games is unable to generate the funds to cover the $1 billion shortfall then both companies could be forced to re-negotiate the deal from the very beginning.

Earlier this year Scientific Games successfully acquired Williams Interactive, who make all the WMS slots such as the popular Bruce Lee and the fairytailed-themed Wizard of Oz slot.

Comments

comments