Party have done it!!! Bye bye eurobet/empire

[Royal Flush]

They have said they are going to do it for a while, and now its done. They have shed the skins.


http://www.partygaming.com/images/new_platform_launch_08_10_05.pdf

[Royal Flush]

lol you can put a side bet on whether the flop will be red or black!!!

CRAZY!

[Nem]

What a joke! "side bets" lol

Black jack: already on Paradise

Deal making: Already done on a few sites.

PartyBingo LOL

[redsimon]

What a joke!

PartyBingo LOL

They renamed the PLO8 tables?

[Nem]

What a joke!

PartyBingo LOL

They renamed the PLO8 tables?

 

[doubleup]

This is huge news for several reasons.

Party did not offer rakeback, but the skins did.  Low level multitabling pros all went to the skins.  So now the skins are left with the pros/semi-pros and Party has the recreational players. 

The skins can expect a substantial reductions in players and profits (I really wouldn't like to be holding shares in Empire Online).  The effect on Party is less predictable.  They can no longer claim to be the largest online poker site.  The removal of the toughest players will make the games easier, but the side bets will eat into the bankrolls of those with poor judgement.

Those with rakeback and affiliate deals with the skins can cancel the orders for ferraris and start taking an interest in the sits vac colums.

Also look out for legal/FSA action - if a deal like this should have been announced to the stockmarket before being effected.       

[TightEnd]

Also look out for legal/FSA action - if a deal like this should have been announced to the stockmarket before being effected.       

This is not true. The deal was announced to the stock exchange at 7am this morning. As the market only opens then and the news broke over the weekend, no rules have been broken


The rest of doubleup's post is spot on I think

Why on earth are you going to play on Empire etc now? too tough!

[TightEnd]

Some city comment on the news


Party Poker relationship. Party has announced that it is splitting its skins from its own players. Empire players will now play on tables with the other skins (Coral, Multi, Intertops) and will not be allowed to play on tables with Party players. This has 2 effects - firstly it reduces liquidity  for both sites, but more for Empire (loses 80% of liquidity) than Party (loses 20%). In Empire's favour, the new skin network will be the third biggest poker site on a standalone basis. Secondly, it will allow Empire to attract Party’s players , and vice-versa,  for the first time - previously, once a player had downloaded Party software, it could not then register at Empire. This move will allow players to register at both Empire and Party for the first time.   Party told us there is nothing stopping it from marketing to Empire players who were currently signed up with Party, but who then subsequently joined Empire's network. Party also implied that, as it will have a lot more "fish" than Empire, and as "sharks" are very mobile, it should be able to attract more Empire players. Again, highly uncertain.

 

[TightEnd]

Empire shares currently down 24%

Party shares down 5% at 75p, having floated at 110 and been to 175 first


Empire saying whole market has slowed in third quarter


This is where it gets interesting. My valuation for Party assuming no growth in the business EVER...ie just assuming cash flow from exisitng users, player base declining at 1% pa in perpetuity is 65p

Not recommending, just saying 

[DJKebab]

TightEnd, so are you saying that assuming they capitalise on the phenomenal growth they have been seeing and are predicting for the future that the price should rise again to beyond the original floatation mark? I bought some shares shortly after they were released to the market and have seen them plummet steadily since...

[DJKebab]

Sorry, that's Party shares I was talking about...

[TightEnd]

Mr Bab


I am not actually allowed to answer your question directly, sorry (rules for investment professionals)

 I will though say this

* Investors feel misled about Party's prospects as described to them when they floated
* This is contributing to "open season" for speculators in forcing the price down, as buyers are understandably holding off
* Party's growth has been slowing. There was debate as to whether this was "Party specific" (poor customer service etc) or industry wide. Jury out
* Future predictions?...be extremely wary about investing in shares on predictions of future growth alone, a recipe for disaster. Look at what the company is currently making, paying in dividends etc first

My comment above stands....


but it remains a very high risk situation

[doubleup]

Also look out for legal/FSA action - if a deal like this should have been announced to the stockmarket before being effected.       

This is not true. The deal was announced to the stock exchange at 7am this morning. As the market only opens then and the news broke over the weekend, no rules have been broken


The rest of doubleup's post is spot on I think

Why on earth are you going to play on Empire etc now? too tough!

I did say "if" - The FSA might want to find out when the decision was taken.  Clearly a huge software development would have to take place in preparation.  Potentially many people would have had access to price sensitive info, thus creating a risk of market abuse that could have been avoided if the split was announced prior to the development.

[TightEnd]

Also look out for legal/FSA action - if a deal like this should have been announced to the stockmarket before being effected.       

This is not true. The deal was announced to the stock exchange at 7am this morning. As the market only opens then and the news broke over the weekend, no rules have been broken


The rest of doubleup's post is spot on I think

Why on earth are you going to play on Empire etc now? too tough!

I did say "if" - The FSA might want to find out when the decision was taken.  Clearly a huge software development would have to take place in preparation.  Potentially many people would have had access to price sensitive info, thus creating a risk of market abuse that could have been avoided if the split was announced prior to the development.

this is always the case with any price sensitive announcements, and why so many "break" in the weekend press for example

the whole city works on the principal of "chinese walls" where thosein possession of such information are kept seperate from those who trade.

Of course abuses still exist, it would be naive to pretend they don't, but it's a great improvement on the good/bad old days when those in the know could make a packet and have no chance of being detected.