I, the managing director of Yahoo! plc would like to inform the shareholders about the recent Yahoo! deal to merge with PARTYGAMING plc which could be a success with your support. I, on behalf of the Board of Directors write this letter to notify the shareholder about how the merger could help Yahoo! plc and what it means to us. We strongly believe that merging with Partygaming plc will definitely help us to increase of customer base with large numbers; this would definitely facilitate us with increased wealth and size in the business.
Eventually this could help increase the shareholders wealth The new technologies have led to an increase in competition in the IT world, and we must take every step possible to retain our position in the market. With people having thousands of alternatives present we have to show our existence and give people what they want. Online gaming sector is a huge market and is rapidly growing every year. Looking at the number of players of the company the website is the largest in terms of poker player. The merger could lead to potential synergy between the two companies's.
Both the companies can gain from each other in terms of number of customers. Partygaming plc could aid Yahoo! In providing a platform on which Yahoo! could conduct its gambling games. If Yahoo! looked into coming up with its own gambling sites it would lead to new investments and can also suffer losses if people are not interested in leaving the previous sites that they played on. The merger with Partygaming plc could aid in safeguarding us against such losses. Since Partygaming has its own well trained and strong technological background members, they could help us in doing it the right way.
Existing plus the new users would contribute towards the success of this merger. If the merger is a success it could contribute to larger profits because of increased number of users. There is a vast population interested in gambling but are not aware of partygaming websites. If we help them to advertise efficiently, indirectly we could gain from it as they would be having more customers through our website and advertisements. There could be huge money saving in terms of research and development since partygaming is already well developed and has reached quite a large part of the population.
The technology used in both the company's could be used to make systems more efficient and have fewer breakdowns and data loss. The company's would be operating on a single data base which could help both to indicate various synergy opportunities to achieve larger number of customers. There would be increase in shareholder wealth by the merger of both the company. In conclusion we would point out that the merger decision is entirely in the hands on the shareholders and they are the people who would be eventually gaining from the merger.