PartyGaming in Talks With Rival Gigamedia

ONLINE gambling group Party Gaming is holding talks on a deal with Nasdaq-listed rival Gigamedia.

Gigamedia, which has a market value of $363m (£246m), is thought to have hired Goldman Sachs, the investment bank, to find a buyer for the whole company or simply its Everest poker brand.

Party Gaming, which this month settled a legal dispute with the US Department of Justice (DoJ), is among a small number of parties thought to be negotiating with Gigamedia.

One potential barrier to a full merger, however, could be the unwillingness of Gigamedia shareholders to hold stock in a London-listed company.

Party Gaming, which is said to be eyeing a number of possible deals, declined to comment on the Gigamedia talks but a spokesman said: "We have made it very clear we believe the industry will consolidate and we will look at opportunities as and when they arise."

After announcing the nonprosecution agreement with the DoJ, Jim Ryan, Party Gaming's chief executive, said that the group was talking to financial institutions about arranging funding for acquisitions.

Gigamedia told investors last month it was "in discussions with several interested parties concerning the possibility of a strategic merger or a sale".

Source:  London Times