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Red Tiger CEO Thinks NetEnt Takeover Could Start Something New
The CEO of games operator Red Tiger has predicted that it will become a common trend for operators to merge after the company was taken over by NetEnt in September 2019.
It was big news when NetEnt announced its most recent acquisition back in September 2019. The gaming giants took over game operator Red Tiger in an all-cash deal that initially came to £200 million but could increase by an additional £23 million in 2022.
It marked a new chapter for Red Tiger. The company was founded just five years ago and soon developed into one of the best names in the business, consisting of 170 employees with offices in the Isle of Man, Malta, and Bulgaria.
The deal made good news for Red Tiger’s stock price. The company’s share value increased by around 30% as a result of the sale. This is something which will please stockholders and company bosses alike.
Part of a Growing Trend?
It was a deal which took many by surprise, particularly in terms of the size. It feels like a massive transaction right now but we may soon feel differently about that if the CEO of Red Tiger is to be believed.
Gavin Hamilton has given an interview where he has gone into detail on the deal itself and what it means for the industry at large.
“I think it’s fair to say, with the consolidation going on at the operator level, this inevitably will cause more consolidation at the supplier level,” Hamilton said.
“Part of what this gives us is the scale to compete in the new world. So, from that perspective, I think we picked the best partner as we picked the biggest.
“This deal just makes sense. I think we’ll look back on this as a very timely move on both our parts. So while this seems like a meaningful deal, we look forward to a couple of years’ time, when we’ll say that was the start of a whole host of changes on the supplier side.
“The best thing we did was get ahead of that change.”
It may be too early to discern just how important this deal is to the industry. It could be the start of a sweeping change or something which all parties look back on with regret.