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Title: SportingBet attempting to acquire Empire Post by: TightEnd on September 05, 2005, 03:10:54 PM Sportingbet has made an approach to Empire worth £790m. Empire is 25% free float, 75% owned by management
The cash/share offer values Empire at 270p, 54% more than the float price 3 months ago However this one could run and run. Acquiring Empire would give Sportingbet, which acquired Paradise last year, an enhanced position. However it could face competition. As Empire's existing partner, PartyPoker depends on the company for about 11% of its user activity. Yet the terms of the commission agreement between the skin and Party means this translates into just 3% of Party's revenues. Were Party to own Empire, it could theoretically recapture this some or all of this lost margin Furthermore if Sportingbet were successful, this would leave Party paying commission to a rival. An uncomfortable situation. Meanwhile 888.com is due to float at the end of this month However this plays out, the road to consolidation to fewer, larger players in online poker is inexorable, and accelerating A little extract from my day job there for blondeites!! Title: Re: SportingBet attempting to acquire Empire Post by: tikay on September 05, 2005, 03:14:29 PM Fascinating!
Keep us informed please Richard, I love this kinda stuff. |