Earlier this month it was reported that World Poker Tour Enterprises Inc. had
signed an acquisition deal with Gamynia.
On Friday, however, the WPT Board voted to terminate the Gamynia deal after a
better deal was offered by Party Gaming subsidiary Peerless Media that
was worth 36% more.
Gamynia offered WPT a sum of just over $9 million and 4% of
future gaming revenues.
Peerless Media offered to pay WPT $12.3 million plus 5% of all future
revenues, a deal that the Board could not turn down, despite that fact that it
needed to pay Gamynia $1 million in compensation as a result.
"Party Gaming 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,"
noted the President and Chief Executive Officer of WPT Enterprises, Steve
Lipscomb.
"The Board of Directors has determined that Party Gaming'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," continued Lipscomb.
Party Gaming has guaranteed WPT a sum of at least $3 million for each of the
first three years following the sale.
Party Gaming will, in return, acquire the TV library and intellectual
property rights, brands and other personal property.
Should the deal meet the approval of WPT shareholders - as it is expected to
- the groups hope to finalize the transaction by the fourth quarter of this
year.
