World Poker Tour Bought by PartyGaming for $12.3 Million

It was announced yesterday that Peerless Media, a subsidiary of PartyGaming, has purchased the World Poker Tour for $12.3 million. World Poker Tour Enterprises made the announcement yesterday and stated that along with the purchase price, PartyGaming will be earning at ongoing 5% participation in gaming and revenues that are generated by the assets.

In early August World Poker Tour Enterprises had announced they sold the WPT to Gamynia Limited for $9 million. it was when PartyGaming offered the larger $12.3 million proposal, WPTE decided to terminate the agreement with Gamynia Limited.

“PartyGaming has been an important partner for a number of years and we are confident that they will be an excellent manager of our brands in the future,” stated Steve Lipscomb, WPTE’s President and CEO. “The Board of Directors has determined that PartyGaming’s acquisition proposal is financially superior and we look forward to working with one of the pioneers and leaders in the poker and online gaming markets to provide a strong vehicle for the WPT brand to continue its global expansion and return to online gaming.”

The new agreement with PartyGaming will see the WPTE selling their Television library and all intellectual property as well as branding rights to PartyGaming. At the same time the WPTE will retain their cash, debt securities investments and future license revenues from the Season Seven sponsorship deal with PokerStars.

The WPTE will retain the net cash proceeds from the sale of their assets and use the money to develop a business away from the game of poker instead of dividing any dividends to the company’s stockholders. This of course has many shareholders angry and upset. The majority of the shareholders of the company must approve the sale of the company and despite WPTE’s decision to not distribute the dividends, the major investors have already agreed to vote for the sale.

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