Party Gaming Acquires the World Poker Tour

Published on Wed, 11/04/2009

Peerless Media, a subsidiary of gambling giant Party Gaming (PRTY.L) is the new owner of the World Poker Tour. Peerless will pay the WPT Enterprise $12.3M in cash and a 5% share of future revenues.

The sale was approved by share holders of the World Poker Enterprise last Friday. Approval came in the wake of a surprising, last minute offer submitted to the WPT Enterprise by Mandalay Media Corp (OTCBB:MNDL), a global publisher and distributor of branded entertainment for 3G network.

Mandalay offered to purchase the WPTE for a total sum of $36.5M. The offer consisted of: $28.5M of cash; $5M in Mandalay common stock and a 5% revenue share.

Although it seemed that Mandalay offer was significantly higher than Party Gaming’s, WPT Enterprise decided to reject it, stating the offer was not superior to Party Gaming’s offer.

In its path to acquire the WPT, Party Gaming surpassed another gambling giant – Playtech. Playtech, through its subsidiary Gamynia Limited, was the first to attempt to acquire the WPT. Its offer to pay a little over $9M was accepted by the WPT Enterprise, but was later rejected, In light of Party Gaming’s superior offer.