WPT Sold to PartyGaming for $12.3 Million

Following our earlier story about World Poker Tour Enterprises (WPTE) being sold to Gaminya Limited, the company cancelled the original sale and is now being purchased by Peerless Media Limited, a subsidiary of Party Gaming. The final sale will cost Peerless Media $12.3 million and an additional 5% of future gaming income, an increase from the $9.075 million and 4% that Gaminya had agreed to.

WPTE must pay $1 million to Gaminya Limited to back out of the prior purchase agreement. Gaminya is associated with Playtech, parent company of the well known iPoker Network. Forms for the sale were filed with the Securities and Exchange Commission (SEC) at the close of trading on Monday.

In a statement released by WPTE, Steve Lipscomb the Founder, President and CEO of WPTE expressed excitement about the deal and that the company felt “PartyGaming’s acquisition is financially superior and we look forward to working with one of the pioneers and leaders in the poker and online gaming markets.”

The deal itself is similar to the original Gamynia sale and WPTE will give the rights to its television library, brand names - which include the WPT and Professional Poker Tour (PPT) – and intellectual property rights to PartyGaming. Stockholders will not receive any of the revenue from the WPTE sale and must approve the sale. The WPTE stated that shareholders who represent 39% of the company’s stock have already agreed to the sale.

The forms filed to the SEC also state that a deal must be completed by the end of February 2010 and either side may back out of the agreement before then. In addition, if WPTE accepts a deal from another buyer, they will have to pay a $1 million termination fee.

We will continue to follow up on this story and report on any additional news as it occurs.

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