WPT sold to another Party

[tikay]

(Reuters) - British online gaming group PartyGaming Plc (PRTY.L) said on Tuesday it agreed to buy U.S.-based branded gaming firm WPT Enterprises Inc (WPTE.O), known as World Poker Tour, for $12.3 million in cash.

PartyGaming said it would also pay a minimum of $3 million over the next three years to World Poker Tour's vendors on an ongoing revenue share related to the assets purchased.

The acquisition is expected to be completed in the fourth quarter of 2009, PartyGaming said in a statement.

In a late evening release on Monday, WPT had said it agreed to sell substantially all of its operating assets other than cash, investments and certain excluded assets to Peerless Media Ltd, a unit of ElectraWorks Ltd, which is owned by PartyGaming.

PartyGaming is WPT's largest customer, accounting for 30 percent of its revenue for the six months ended June 28, WPT said in a regulatory filing.

Last month, PartyGaming had said it was looking for further acquisitions following its purchase of bingo website operator Cashcade for an initial 71.9 million pounds ($118.8 million at that time).

Earlier this month, rival online gaming firm 888 (888.L) said it was close to making an acquisition and expected a deal to be completed soon.

PartyGaming shares were down 0.5 percent at 268.2 pence in volatile trade by 0848 GMT on the London Stock Exchange.

[tikay]

A slightly better slant on it here.....

PARTYGAMING IS to acquire the business and assets of World Poker Tour parent company WPT Enterprises, scuttling a deal WPT had with investment group Gamynia.


Party’s WPT acquisition, for US$12.3m cash and an ongoing 5% revenue share relating to the purchased assets, ends a proposed deal unveiled three weeks ago that would have seen Gamynia pay WPT US$9m for WPT plus a percentage of future revenues from the World Poker Tour and Professional Poker Tour brands.

The PartyGaming deal remains subject to formal approval by WPT shareholders, but is expected to be completed in the fourth quarter of 2009.  Assuming it goes ahead, the revenue share relating to the purchased assets will see Party make a minimum aggregate payment of $3m over the next three years. 

Assets include WPT's television library, brand names and contracts. The company will retain the current cash on its books, which is understood to total $13.4m as of 30 June, as well as license revenue from particiular sponsorship deals for the upcoming season of the World Poker Tour.

As reported on EGRmagazine.com, Party pledged an M&A drive after settling with the US authorities in May. This month's WPT deal follows PartyGaming acquiring Cashcade in July, and a deal between Party and UK TV broadcaster Five for a TV bingo and casino product in June.

[AlexMartin]

Interesting aquisition by party, any shareholders on here? Would like your opinion on the company and its future.


 as an aside, they should sell the magazine to new management too, dunno how they can totally forget about british bracelet winner JP kelly when doing their end of wsop review in Augusts issue, did he get is confiscated? I understand there are always a lot of typo's, bits of dodgy editing at times with these things, but saying we only won 2 bracelets and completely omitting him is a huge faux pas and pretty insulting imo. p17.

[Royal Flush]

Interesting aquisition by party, any shareholders on here? Would like your opinion on the company and its future.


 as an aside, they should sell the magazine to new management too, dunno how they can totally forget about british bracelet winner JP kelly when doing their end of wsop review in Augusts issue, did he get is confiscated? I understand there are always a lot of typo's, bits of dodgy editing at times with these things, but saying we only won 2 bracelets and completely omitting him is a huge faux pas and pretty insulting imo. p17.

WPT and WPT Magazine are not the same thing, iirc

[fatshaft]

Interesting aquisition by party, any shareholders on here? Would like your opinion on the company and its future.


 as an aside, they should sell the magazine to new management too, dunno how they can totally forget about british bracelet winner JP kelly when doing their end of wsop review in Augusts issue, did he get is confiscated? I understand there are always a lot of typo's, bits of dodgy editing at times with these things, but saying we only won 2 bracelets and completely omitting him is a huge faux pas and pretty insulting imo. p17.

WPT and WPT Magazine are not the same thing, iirc

Yup, just a licensing deal.

[fatshaft]

Interesting aquisition by party, any shareholders on here? Would like your opinion on the company and its future.

I'm guessing Party have an eye on America re-opening. With Harrahs starting off their interaqctive divsion, it's clear the big American casinos know something is in the wind.

With that in mind, and Stars having the EPT wrapped up, this could quite possibly be Party lining up their ducks for a future American push. The price is chicken feed for the potential of the brand, it's just been managed like shit up to now.

[tikay]

Interesting aquisition by party, any shareholders on here? Would like your opinion on the company and its future.

I'm guessing Party have an eye on America re-opening. With Harrahs starting off their interaqctive divsion, it's clear the big American casinos know something is in the wind.

With that in mind, and Stars having the EPT wrapped up, this could quite possibly be Party lining up their ducks for a future American push. The price is chicken feed for the potential of the brand, it's just been managed like shit up to now.

Perceptive.

So, who do you think HIE have got lined up......?

[fatshaft]

Interesting aquisition by party, any shareholders on here? Would like your opinion on the company and its future.

I'm guessing Party have an eye on America re-opening. With Harrahs starting off their interaqctive divsion, it's clear the big American casinos know something is in the wind.

With that in mind, and Stars having the EPT wrapped up, this could quite possibly be Party lining up their ducks for a future American push. The price is chicken feed for the potential of the brand, it's just been managed like shit up to now.

Perceptive.

So, who do you think HIE have got lined up......?

Really don't know. They can't touch those still taking American play, and that leaves all the networks with crappy software, Boss, Playtech, Ongame, Microgaming, and they have all taken US play in the past.

They have time on their hands, maybe they think they can build from scratch? Or, and it's a big OR, what about PKR?  It's the only next generation out there, and it's shown they can build big numbers despite no initial database to work from, their big issue would be scaleability, which would have to be way way out of where they are now.

I think they may try to go for a totally clean product, and build their own, otherwise why set up Harrahs Interactive when there's not even a (realistic) hint of UIGEA being repealed, far less legislation coming in to regulate from the USA? Surely that could have waited for some time yet?

[tikay]

Interesting aquisition by party, any shareholders on here? Would like your opinion on the company and its future.

I'm guessing Party have an eye on America re-opening. With Harrahs starting off their interaqctive divsion, it's clear the big American casinos know something is in the wind.

With that in mind, and Stars having the EPT wrapped up, this could quite possibly be Party lining up their ducks for a future American push. The price is chicken feed for the potential of the brand, it's just been managed like shit up to now.

Perceptive.

So, who do you think HIE have got lined up......?

Really don't know. They can't touch those still taking American play, and that leaves all the networks with crappy software, Boss, Playtech, Ongame, Microgaming, and they have all taken US play in the past.

They have time on their hands, maybe they think they can build from scratch? Or, and it's a big OR, what about PKR?  It's the only next generation out there, and it's shown they can build big numbers despite no initial database to work from, their big issue would be scaleability, which would have to be way way out of where they are now.

I think they may try to go for a totally clean product, and build their own, otherwise why set up Harrahs Interactive when there's not even a (realistic) hint of UIGEA being repealed, far less legislation coming in to regulate from the USA? Surely that could have waited for some time yet?

Check your PM's.

[FLushman]

Interesting aquisition by party, any shareholders on here? Would like your opinion on the company and its future.


 as an aside, they should sell the magazine to new management too, dunno how they can totally forget about british bracelet winner JP kelly when doing their end of wsop review in Augusts issue, did he get is confiscated? I understand there are always a lot of typo's, bits of dodgy editing at times with these things, but saying we only won 2 bracelets and completely omitting him is a huge faux pas and pretty insulting imo. p17.

Yep, we had brain freeze and omitted JP from the end-of-Series figures, but we did include a write-up on him in the previous issue when he won his bracelet. correction going into WPT magazine this month, available from all good bookstores, etc.