WPT Receives $36.5 Million Acquisition Offer From Mandalay Media Inc.

In yet another twist to the WPT story, just as shareholders are preparing to vote on an acquisition proposal from Peerless Media Ltd. today, they have received what seems to be a sweeter deal from another interested party.
The latest offer from Mandalay Media Inc of $36.5 million has prompted the company co-Chairman Robert Ellin to urge the WPT board of directors to postpone today’s Special Meeting of Shareholders so as to give full consideration to his new proposal.
Mandalay Media Inc said that not only would shareholders benefit from the vastly superior offer of $36.5 million but they would also receive cash and stock of $1.77 per share or a 28 percent premium over the Peerless Media Ltd asset sale. In addition shareholders would receive revenue participation rights which are not included in their current offer.
Mandalay Media Inc. co-Chairman Robert Ellin commented: “We believe a strategic combination of Mandalay and WPT would deliver significant value to our respective shareholders, and position the combined company for substantial future growth.”
The World Poker Tour originally announced at the beginning of August that they would be selling their assets to Gamynia Limited for $9,075,000  but then decided to accept a more attractive offer of $12.3 million from Peerless Media Ltd, a subsidiary of PartyGaming who own Party Poker.
Retracting the original agreement with Gamynia meant incurring a $1 million penalty which was written into the revised agreement with PartyGaming which stated that the latest offer “may be terminated by either Buyer or the Company if the Closing has not occurred by February 24, 2010,” and just as with Gamynia if WPTE accepts the Mandalay Media Inc. offer in the meantime they would again incur a $1 million termination fee.
We will endeavour to bring you the latest developments on the WPT acquisition offer as it occurs.