PartyGaming buys WPT for $12.3 million

[TonyG]

Linky

Another bold move by PartyGaming. Sign of things to come?

[321]

Pretty weird since that other deal was already announced.

It's still a pig in a poke though. The WPT itself is worth not much. It recently though rose to #4 in US Google for a [poker] search... but then US Google is kinda usless to Party. I suppose though it is a a very solid domain to use in terms of online marketing, while also being a trademark they can hang a poker tour around (and poker tours like the EPT and LAPT do help a lot in marketing).

Those poor shareholders. 20 million dollars worth of assets where they could get at least some money, and now instead the same management can run that further into the ground.

[MJ]

Good vertical for US land based events that happen year round, definately makes you go hmmmm.

[resipsa]

Pretty weird since that other deal was already announced.

Why is that weird? WPT is public company. If a public company announces a sale and someone comes to them with a better offer between signing and closing, the company has an obligation to its shareholders to listen. In this case the price difference was pretty substantial and you can bet there would have been a suit filed against the board if they stayed with the lower priced deal.

[TonyG]

Good vertical for US land based events that happen year round, definately makes you go hmmmm.

I concur doctor.

Like others have mentioned, the WPT isn't worth much as is. However, the exposure Party will get in the US makes me think they have high hopes of re entering the US market. I don't think they are basing said hopes on a hunch.

Also, interesting that Mike Sexton (WPT host) recently returned to Party as a consultant. (he was a consultant for Party back in the day)

[xYassassinYx]

Wow I knew a new buyer had come in at the last minute but I would never have guessed Partygaming, very interesting

[321]

Why is that weird? WPT is public company. If a public company announces a sale and someone comes to them with a better offer between signing and closing, the company has an obligation to its shareholders to listen. In this case the price difference was pretty substantial and you can bet there would have been a suit filed against the board if they stayed with the lower priced deal.

They didn't say an offer, they said a completed deal, apparently it was never actually presented to shareholders, but it is still weird since the WPT has been on the market a year or more. It isn't like somebody just woke Party up and said it was available. Presumably they were given a last chance to bid, and they turned it down before the first announcement, so why suddenly come to life?

[Squizzel]

They didn't say an offer, they said a completed deal, apparently it was never actually presented to shareholders, but it is still weird since the WPT has been on the market a year or more. It isn't like somebody just woke Party up and said it was available. Presumably they were given a last chance to bid, and they turned it down before the first announcement, so why suddenly come to life?

the same reason people bid at the last minute in auctions on ebay. IE to not start a bidding war. And to see if anyone else wants it.

[resipsa]

They didn't say an offer, they said a completed deal, apparently it was never actually presented to shareholders, but it is still weird since the WPT has been on the market a year or more. It isn't like somebody just woke Party up and said it was available. Presumably they were given a last chance to bid, and they turned it down before the first announcement, so why suddenly come to life?

You're never going to have a deal to buy a public company that is announced and closed on the same day. you always need time for both parties to go through the due diligence process (and part of that means making sure the shareholders aren't getting screwed by a bad deal because the board screwed up).

Any deal between sign and close can fall apart if a new buyer appears with a substantially better offer (although the original buyer may have negotiated a reasonable breakup fee if the seller walks).

[321]

Apparently the WPT had to pay a $1m kill fee to the first buyers. That makes more sense.