Online operator behind PartyPoker.com has agreed to purchase the iconic land-based poker tournament series for $12.3 million plus five percent of future revenues.
Thursday 27th August 2009
Leading listed online gaming operator PartyGaming is to purchase the popular World Poker Tour (WPT) land-based poker tournament series from America’s World Poker Tour Enterprises (WPTE) Incorporated.
WPTE announced earlier this month that it had agreed to sell the poker series to Antigua-based Gamynia Limited for $9.075 million plus a percentage of future revenues but then delayed the sale after receiving a second bid.
Gibraltar-based PartyGaming is the firm behind popular online poker domain PartyPoker.com and signed a non-prosecution agreement last year with American authorities after agreeing to pay a fine of $105 million. Earlier this year, it purchased British online bingo operator CashCade Limited for up to $158.82 million to give it leading brands such as FoxyBingo.com, MirrorBingo.com, ThinkBingo.com and CheekyBingo.com.
According to a report from The Wall Street Journal, PartyGaming has agreed to pay $12.3 million for the WPT through its Peerless Media Limited subsidiary subject to shareholder approval, which will include a one million dollar advance to compensate Gamynia.
In addition, PartyGaming has agreed to hand over five percent of the revenues generated by the WPT’s assets, which include its television library, brand names and contracts.
“Buyer has also agreed to pay the company five percent of future gaming and other revenues as described in the purchase agreement from the use of the company's brands by buyer,” read a statement from WPTE.
“Buyer has guaranteed that the company will receive at least an aggregate of three million dollars during the three years following the close under this future revenue sharing arrangement.
“For the two-year period following the close, 20 percent of the proceeds from the future revenue sharing arrangement will be placed into an escrow account to settle the company's indemnification obligations, if any, arising under the purchase agreement and the related ancillary agreements. The amounts deposited into such escrow account shall not be the sole source of recovery for the company's indemnification obligations to buyer.”
