Last week PartyGaming, the listed online gaming company, was in the process of buying Cashcade for 100 million pounds. Cashcade is the owner of foxybingo.com which has to be a cash cow, generating tidy amounts of cash for the online casino group (12 million pounds EBITDA last year).
How wise can this decision by Cashcade be… getting rid of a cash cow? Apparently the Independant News & Media group who has a 20% stake in Cashcade, is trying to raise cash to pay back a bond and I wonder how much of a role they have played in this decision.
Its desperate times for some companies in debt, and that usually calls for desperate measures. But off loading a profit making company, with a tidy little cash flow, to repay your debt… is that wise?













