World Poker Tour Enterprises, the parent company of the World Poker Tour, announced today that a subsidiary of PartyGaming will purchase the vast majority WPTE’s assets in a deal worth $12.3 million.
Today’s announcement of the sale of WPTE assets is the second such statement issued in less than a month. In early August the company announced it would be selling off its assets to privately-owned investment company Gamynia Limited for $9.08 million. But the proposal from PartyGaming subsidiary Peerless Media Ltd. offered 25% more cash upfront, as well as an ongoing 5% participation in gaming and other revenues generated by the assets. That was enough for WPTE’s Board of Directors to scrap the old deal and go with PartyGaming.
“PartyGaming 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,” said Steve Lipscomb, President and CEO of WPT Enterprises. “The Board of Directors has determined that PartyGaming’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.”
The deal will see WPTE unload its television library and all related intellectual property rights, brand names, and trade names, while retaining its cash certain financial assets, and future license revenues from an existing sponsorship deal with PokerStars for Season Seven of the World Poker Tour.
The sale still has to be approved by WPTE stockholders before taking effect, but WPTE says that the holders of 39% of the company’s common stock have already agreed to vote in favor of the deal. The company plans to use the cash from its asset sale to start up a new business outside of the poker industry.
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