Deal would have a huge impact on online gaming industry if it goes ahead.
British bookmaker and online gambling company Ladbrokes (LSE: LAD) is holding merger talks with online gaming software giant Playtech (AIM: PTEC), the Daily Telegraph has reported.
₤2.2 billion deal to shake industryThe proposed merger, which would be worth around ₤2.2 billion ($3.5 billion), comes as Ladbrokes simultaneously negotiates a ₤240 million takeover of online gambling company 888 Holding (LSE: 888).
If it goes ahead, Ladbrokes would develop from a business that works directly with consumers through it land-based and online betting services, to one that also supplies software and games to online casinos, sportsbooks and poker rooms.
However it could also complicate the deal Playtech signed in 2008 with Ladbrokes' main rival William Hill.
Other mergers on the cardsThese latest merger talks come at a time of great change for the gambling industry, with observers also closely monitoring discussions between PartyGaming Plc and bwin Interactive Entertainment AG, which would create the world's largest publicly listed online gaming group.
However, the industry is used to such things not coming to fruition, with failed talks held as long ago as 2006 between Ladbrokes and 888, and the bwin-PartyGaming initiative first discussed in 2009.
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