Online consolidation thread

[The Camel]

Sportingbet Plc has issued its financial results for the first six months of its 2010/11 financial year ending January 31, 2011.

Net poker revenue in the second quarter (Nov. to Jan. 2011) at its online poker business Paradise Poker was down 36 percent to £3.6 million compared to £5.6 million in the same period last year.

The company said the was as a result of, “economic conditions [which] affected our players and our product has proved uncompetitive compared to the poker sites that still accept US based players.”

“The poker market remains challenging as the environment is very competitive due to the large US-facing companies continuing to utilise their significant US cash flows and high liquidity to aggressively target the European region.”

In the six months to end Jan. 2011 net poker revenue dropped to £9.8 million to £7.1 million year earlier.

How much did Sportingbet pay for Paradise?

To answer my own question.. $300 million!

At this rate they might get their money back by 2100!

[TightEnd]

$298m

[Dave 1961]

I believe that this is more significant than the Party/bwin merger. These guys have very strong US connections and deep pockets. They will be market leaders within three years. This is also great news for poker as it brings in a strong corporation that will lobby for the US to go legal. The timing is also significant considering the recent US actions.

[DaveShoelace]

And also its good for you, as you clearly work for them? 

[DaveShoelace]

Oh maybe not, just looked like it as u only had two posts, but the first one is from ages ago

(do u work for them?)

[Dave 1961]

No I don't

We handle most of the poker sites event management. We run the logistics for the WPT and are running the new GSOP tour. We also handle all of the networks WSOP buy ins. So at some time most poker players have be handled by us if they have been at an event.

The reason I am pleased about IGT is it opens up the chance of the US going legal quicker and will bring in much needed revenue to poker.

[TightEnd]

Poker News

IGT to Buy Entraction

According to a press release, International Game Technology (IGT) has extended an offer to buy all outstanding shares of Entraction Holding. The bid is approximately $115 million, or $11.11 per share.

"This transaction represents a fantastic opportunity for our employees, customers, and shareholders alike," Peter Astrom, President and CEO of Entraction said. "Entraction will be able to utilize IGT's global scale and distribution to advance our short and long term objectives in exciting, new ways and we look forward to joining the IGT team."

Astrom will continue his role as CEO and president of Entraction, but will report directly to CEO and president of IGT, Patti Hart. The offer is projected to close during IGT's current fiscal year.

"The addition of Entraction advances IGT's position in legalized Interactive gaming markets," Hart said. "It strengthens our interactive portfolio by adding poker, bingo, casino, and sports betting. This combination will drive enhanced value for our global customers and partners. We are also thrilled to welcome the Entraction team as the newest members of the IGT family.

[TightEnd]

http://www.ft.com/cms/s/0/1bd8b922-9d8d-11e0-9a70-00144feabdc0.html#ixzz1Q6VWsvWM

Sportingbet’s shares rose sharply after the online gambling company revealed it had received a “highly preliminary” approach from Ladbrokes.

A statement from Sportingbet said the approach from the UK bookmaker “may or may not lead to an offer being made”. Shares rose by 19 per cent and at midday on Thursday were at 49p, up more than 15 per cent.

[TightEnd]

Rank Group, the publicly listed owner of Grosvenor Casinos and Blue Square Poker, is likely to be sold after the board reluctantly said shareholder should accept the advances of Gouco Group.

Earlier the board had resisted the takeover and advised shareholders against accepting an offer from Gouco.

The board believes the Gouco significantly undervalues the business and the 150 pence offer was only 0.8 percent above the share price at the time of the offer.

The board warned shareholders that Gouco could be free to cancel Rank’s public listing but the Hong Kong-based company said they would like to keep Rank in the public domain, stating, “In the event that the FSA[Financial Services Authority] determined otherwise, Guoco would explore with the FSA ways in which the necessary percentage of shares in public hands could be restored over a reasonable period of time … so far as commercially reasonable."

[Dave 1961]

I dont  know if it is OK to post this link but Howard Lederer was spotted at last...also the new on line gaming bill makes for interesting reading

http://www.pokernews.com/news/2011/06/the-nightly-turbo-howard-lederer-talks-pokerstars-big-game-10607.htm

So we have Rank up for sale Ladbrokes and Sportingbet in talks, Entraction with new owners and On line in the US likely to move quicker than many predicted. All in three months !

The WSOP is pulling in record numbers and there are several more poker tours planned, I think the next three months will be just as interesting.

[TightEnd]

The board of Rank Group Plc, owner of Grosvenor Casinos and Blue Square Poker, has changed its mind about the proposed sale of the Group to Hong Kong-based Guoco.

Last week the board reluctantly urged shareholders to accept the offer of 150 pence, even though they believe it greatly undervalued the group.

However today the board did a u-turn recommending that shareholders reject the offer providing they aren’t worried about Guoco canceling Rank’s stock listing.

Rank is concerned that Guoco will not give an unconditional commitment to continue its stock market listing.

[TightEnd]

bwin.party digital entertainment today said it had started the process of selling the Ongame poker network.

The company, formed by a merger of bwin and PartyGaming earlier this year, described Ongame as a “surplus asset”. bwin poker players are expected to be moved to Party Poker ahead of the sale.

The statement from bwin.party regarding the proposed sale said, "One area of our stated strategy was to recycle surplus assets. As part of this process and having taken some initial soundings from interested parties, we have commenced a formal process to sell Ongame’s Business-to-Business operation that is one of the world’s leading online poker networks with a state-of-the-art technology platform. We expect that any sale will be completed by the end of the year.

Ongame hopees to emulate Sweden’s Entraction network which was sold for €70 million to International Game Technology last month.
 

[boldie]

I dont  know if it is OK to post this link but Howard Lederer was spotted at last...also the new on line gaming bill makes for interesting reading

http://www.pokernews.com/news/2011/06/the-nightly-turbo-howard-lederer-talks-pokerstars-big-game-10607.htm

Should have got Dom on it, at least he would have gotten in his face a bit.

don't get done, get Dom.