Party Gaming Makes Big Purchase
August 28, 2009
There were rumors swirling, but there was no proof until now. The facts
are out – Party Gaming is purchasing World Poker Tour – and they are doing
it for the sweet price of $12.3 million. The British online gambling group
said that they have agreed to purchase the tour – which is US based – from
WPT Enterprises, Inc.
They said that as part of the deal they are going to pay them the lump sum
up front and then for the next three years they are going to pay them
another $3 million for their vendors as part of an ongoing revenue share.
They expect that the poker deal will be completed by the end of this year
and are very excited by the move.
WPT said that they have agreed to sell almost all of their operating assets
excluding of course any cash or investments that they have to Peerless
Media, Ltd. Peerless is a unit of ElectraWorks Ltd., which already owned by
Party Gaming. With Party Gaming being the poker tour’s largest customer and
already providing them with 30% of their revenue the move really does make a
lot of sense.
The poker site has been looking for various acquisitions, and this is right
up their alley. Last month they purchased CashCade – which is a bingo site –
showing that not only are they looking to grow but they are looking to
expand into other areas as well. They purchased that site for $118.8
million, which is what it was worth at the time of the deal.
