Mandalay Media attempts to outbid PartyGaming to buy World Poker Tour
The Hollywood media company Mandalay Media has launched a last minute bid to acquire WPT Enterprises Inc. and set to surpass the current bid tabled by Peerless Media Ltd, a subsidiary of PartyGaming. Mandalay, a company that deals with entertainment branding has bid a total of $36.5 million, with $28 million offered in cash, with a further $5 million in Mandalay Media stock and $3 million guaranteed in revenue participation rights. This is a massive increase on the $12.3 million previously offered by PartyGaming.
A press release shed further light on the situation stating, “The estimated value to shareholders per share is $1.77, including the guaranteed portion of the revenue participation rights, and as adjusted for the actual share count is closing. The proposal represents a premium of approximately 61% over the closing price of WPT’s common stock on October 26 2009 and a premium of approximately 28% over the implied value at closing of WPT’s pending asset sale with Peerless Media Ltd”.
WTP Enterprises must now meet to discuss not only the Peerless Media proposal but this new bid by Mandalay Media. A shareholder’s meeting was originally scheduled to vote on the former but now must postpone its decision in light of the new developments. To date WPT has not issued a statement on the matter.