PartyGaming to Buy Most of WPT's Assets

Written by:
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Published on:
Aug/24/2009

PartyGaming PLC (PRTY.LN) has agreed to acquiring nearly all of WPT Enterprises Inc.'s (WPTE) operating assets, ending a buyout deal the operator of the World Poker Tour had with an investment grop.

PartyGaming will pay $12.3 million as well as 5% of the revenue generated by the assets. They include WPT's television library, brand names and contracts. The company will retain the current cash on its books, which totaled $13.4 million as of June 30 and license revenue from certain sponsorship deals for the upcoming season of the World Poker Tour.

WPT shareholders, who won't see proceeds from the sale, have to approve the deal.

Gamynia Ltd. three weeks ago reached a deal to sell assets for $9.1 million plus some future revenue from the World Poker Tour and Professional Poker Tour brands.

WPT has been beset by years of losses and missteps. Its stock has slumped from $29.50 at its mid-2005 peak to a low in November of 15 cents. The stock rose 8.6% after-hours to $1.14

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