Just when you thought the parent company of the World Poker Tour (WPT) had sold the majority of its assets to Gamynia Limited, news broke on Monday that another deal had been struck. This time, Peerless Media, a subsidiary of Party Gaming, reached an agreement to buy WPT Enterprises (WPTE). The price tag was $12.3 million plus 5% of future gaming revenue, up from the $9.075 million and 4% that Gamynia had offered two weeks ago. Party Gaming already sponsors the international broadcasts of Seasons IV through VI of the WPT and Season I of the Professional Poker Tour (PPT). (Image courtesy of Party Gaming)

The $12.3 million payment is adjusted downward based on the “amount of certain obligations of Party Gaming or its affiliates accruing or paid to the Company from July 10, 2009 through the close of the Transaction,” according to terms agreed to on Monday. WPTE will receive at least $3 million over the next three years in shared gaming revenue. In addition, Party Gaming will front WPTE $1 million, the amount it owes to Gamynia Limited for backing out of its agreement.
News of a second WPTE buyer sprung up last week, pushing the company’s stock up 20%. The company is traded on the NASDAQ Stock Exchange under the symbol “WPTE” and closed trading on Monday down $0.01 to $1.05. Over the last 52 weeks, it has fluttered in a wide range of $0.15 to $1.95. A statement released to the Securities and Exchange Commission (SEC) noted that Party Gaming accounted for 30% of WPTE’s revenue for the six months that ended on June 28th, 2009.

None of the $12.3 million will be distributed to shareholders. Rather, WPTE will use the money to dive into non-poker businesses. In the agreement reached with Gamynia, executives revealed that the company would drop the WPTE moniker and move forward in a different industry. Steve Lipscomb, WPTE’s Founder, President, and CEO, commented in a press release, “Party Gaming 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.”

Three-time World Series of Poker (WSOP) bracelet winner Lyle Berman is WPTE’s Chairman. Flanking him on the Board of Directors are his son (Bradley Berman), former Bunim-Murray Productions CEO Joseph Carson, and actress Mimi Rogers, among others. Per the terms of the sale, WPTE will hand over the rights to its television library, brand names, trade names, and intellectual property rights. The company will keep its “cash and cash equivalents, investments in debt securities and put rights, certain other investment and litigation assets, and future license revenues from certain existing sponsorship deals for Season Seven of the World Poker Tour.”

The deal is now subject to approval by WPTE stockholders. Its management noted that stakeholders representing 39% of the company have already indicated that they will vote in favor of the new agreement with Party Gaming. The parent company of PartyPokeris publicly traded on the London Stock Exchange, where it can be found under the symbol “PRTY.” Shares of Party Gaming closed up £12.70 on Monday to £269.60. At the time of writing, the company had not issued notice of its new acquisition to the Exchange.

PartyPoker does not accept customers from the United States and is the fourth largest online poker site or network worldwide according to PokerScout.com. PartyPoker boasts a seven-day running average of 4,700 real money ring game players, with a 24-hour peak of double that total. Its traffic is similar to that found on the iPoker Network, whose parent company, Playtech, was associated with Gamynia Limited. WPT Host Mike Sexton (pictured at right) serves as PartyPoker's ambassador.

Either party can terminate the agreement after February 24th, 2010 if the closing has not occurred by that date. In addition, the filing notes, “If the Purchase Agreement is terminated under certain circumstances, including a determination by the Company’s Board of Directors to accept an acquisition proposal it deems superior to the Transaction, the Company has agreed to pay Buyer a $1 million termination fee and, in certain instances, to reimburse Buyer for the $1 million initial payment delivered to the Company upon the execution of the Purchase Agreement.”

The sale is not expected to affect the ongoing eighth season of the WPT. We’ll keep you posted on the latest right here on PocketFives.com.