World Poker Tour Enterprises (WPTE), the parent company of the popular World Poker Tour (WPT), has sold its assets to Gamynia Limited. As a result of the sale, Gamynia will absorb “substantially all of the Company’s operating assets other than cash, investments, and certain excluded assets,” according to a WPTE press release that was distributed late Monday afternoon. The deal was worth $9.075 million plus a percent of future revenues. Despite the new ownership, business is largely expected to continue as normal on the felts of the groundbreaking tournament series, which is currently filming its eighth season. Let’s take a look at the specifics of the WPT sale.
Television programming and live tournaments are expected to continue as normal, according to a WPT official. The WPT is just a few weeks away from the start of the annual high-stakes Legends of Poker, a $10,000 buy-in tournament that begins on August 22nd. Last year, longtime PocketFiver Amit amak316 Makhija finished as the runner-up to John Phan, with Zachary CrazyZachary Clark claiming third place for $281,000. The Legends of Poker will serve as one of the very first events to take place inside the Bicycle Casino’s (pictured at left) brand new event center and will be covered on-site by PocketFivesLive.com.Assets that will soon be the property of Gamynia include WPTE’s episode library, intellectual property rights, brand names, and “assumed contracts.” WPTE will hang onto its cash, cash equivalents, office leases, and employee contracts. In addition, WPTE will continue to reap Party Gaming’s sponsorship revenues from Seasons IV to VI of the WPT and Season I of the Professional Poker Tour (PPT). It will also retain income from PokerStars’ sponsorship of the seventh season of the WPT outside of the United States.
Gamynia has partnered with Hardway Investments, whose clients include the industry staples Playtech (which operates the iPoker Network) and Titan Poker, the flagship site of Playtech’s network. Hardway is based in Antigua and also works with the affiliate network Euro Partners, Casino Tropez, and Europa Casino. The company’s site claims that it is “one of the world’s top established and progressive eGaming marketing, consulting, and operations firms.” Hardway will be charged with managing the future of the WPT brand.
It was also revealed that, under the new ownership, the WPT will “enter the online gaming market.” ClubWPT serves as the company’s subscription-based online poker site that is open to players from the United States and runs $19.95 per month. Currently, ClubWPT members are competing for $10,000 seats into WPT Season VIII events at Bay 101, Beau Rivage, the Bicycle Casino, the Commerce Casino, Foxwoods, and the series’ new stop at the Hollywood Casino in Lawrenceburg, Indiana. Last November, the WPT’s for profit online poker room and casino shuttered its operations and referred players to InterPoker. One month prior, the company announced that it planned to end its agreement with the CryptoLogic Network after operating on the family of sites for two years.The sale must be approved by a majority of WPTE’s shareholders. The company announced that his has secured the approval of 39% of its constituents so far. Should the sale officially be green-lighted, the WPTE will change its name and move into a non-poker venture. No indication was given as to what new businesses it would be engaged in. However, its press statement notes that WPTE “will employ our cash in a new venture by developing a new business or combining, through one or more strategic transactions, with companies that have significant unrealized value or growth potential.”
WPTE stock is traded on the NASDAQ, where it can be found under the same four-letter acronym. The news of the sale was posted after trading had closed for the day on Monday. On Tuesday, WPTE stock was down $0.43 to $1.06 at the time of writing, or 29%. Between September of 2008 and June of 2009, the company’s shares were fetching less than $1 and faced de-listing from the NASDAQ. Four years ago, WPTE traded at over $26 per share. By May of 2007, its price had fallen below $5. The company is chaired by Lyle Berman, with Steve Lipscomb serving as its President and CEO. Its shareholders will not receive a distribution of the sale proceeds.
Check out PocketFivesLive.com for complete WPT coverage of online poker players from the upcoming Legends of Poker.
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