Gamynia Limited Purchases WPT Enterprises for $9.075mAugust 5, 2009 9:43 am
WPT Enterprises has announced it is selling all its poker brands and most other assets to Gamynia Limited pending approval by a majority of the company’s shareholders. The deal is likely to be completed in the fourth quarter of 2009 without any hitches, especially as 39% of the WPT shareholders have already indicated their approval.
WPT Enterprises portfolio includes producing the World Poker Tour TV series which hosts high stakes poker tournaments in various casinos around the world, as well as licensing WPT products, merchandise and an online gaming site. The WPT became a premium brand, but despite posting a successive second quarter profit has seen its popularity decline in recent times, possibly due to the turmoil experienced in the US poker market.
The WPT has become famous for organising complete seasons of high stakes poker tournaments with $10,000 to $25,000 buy-ins, but recently into season 8 it has seen attendances drop of sharply, with this year’s Bellagio Cup down 40%.
WPT Founder, President, and CEO Steve Lipscomb said: “We believe this transaction will enable the World Poker Tour to realize its full potential across both its existing businesses and the lucrative online gaming market. Gamynia and its partners possess highly complimentary resources which will help it invest in and effectively integrate with the World Poker Tour efficiently and profitably.”
Gamynia Limited is a privately held investment group and its deal with WPT Enterprises for $9.075 will see it acquire its operating assets including television rights, sponsorship, distribution and licensing units, while WPTE will retain some assets, cash investments, and profits from seasons 4 to 6 of the WPT.
Gamynia has also announced it intends to join forces with Hardway Investments, the gaming marketing company who’s clients include Playtech, Casino Tropez, Titan Poker, and Europa Casino, so as to “exploit and develop the WPT brands with the goal of maximizing future revenue opportunities.”