Mandalay Entertainment Triples WPT Purchase Bid
Written by Renee K | Tuesday, November 3rd, 2009
The old adage, ‘it ‘aint over ‘til it’s over’ usually rings very true in the poker industry, and this was showcased in a remarkable twist to the World Poker Tour Enterprises saga this week.
Two months ago, Party Gaming, through its subsidiary Peerless Limited, put in a bid to purchase WPTE for just over $12 million. Party Gaming’s subsidiary had put in an offer for $12.3 million and it was considered a done deal. This offer was the second that the WPTE had received in the same month, after Party Gaming improved on the first offer by Gamynia Limited for $9.08 million.
The gaming group believed the deal was all but finalized, and the only thing standing in its way was a vote by the World Poker Tour Enterprises Board of Directors to finalize the offer.
However, at the very last moment, Mandalay Media stepped in and made a new offer that the Directors simply could not ignore.
A statement issued by Mandalay Media on Friday said that the group had increased its proposal to acquire World Poker Tour stock for $36.5 million.
The new deal would consist of $28.5 million in cash, $5 million in Mandalay Media stock and $3 million guaranteed perpetual revenue participation rights.
This “Superior Proposal”, a term coined by the co-chairman of Mandalay Media, Robert Ellin, showed that its offer was infinitely better than that of Party Gaming’s since the latter’s did not provide any payment or distribution to World Poker Tour shareholders.
Mandalay promised to provide World Poker Tour shareholders with cash and stock.
“Based on October 26, 2009 closing prices, our offer represents a 23% premium over the value at close of your proposed asset sale with Peerless and a 54% premium over WPTE’s closing price,” read the offer.
The deal with Peerless would have seen WPTE sell its brand and trade names, as well as its TV library for $12.3 million.
It is now up to the WPTE Board of Directors to examine this new offer and decide if and when to accept it.
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· Written by Renee K · Filed Under Poker Gossip · Comments Off
