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WPT stockholders approve sale to online gambling giant Party Gaming

3/11/2009
Despite the best efforts of mobile entertainment company Mandalay Media to acquire World Poker Tour Enterprises with a last-minute $36.5 million bid, WPTE shareholders have approved a purchase by Party Gaming subsidiary Peerless Media.

The proposed $12.3 million purchase by the Party Gaming Company got the green light after a private shareholders meeting conducted last Friday deemed that Mandalay’s proposal, though a larger bid, was not a superior deal for the company.

As a result, at the conclusion of the Los Angeles meeting, sale to Peerless Media was approved and the news should now see the end of any speculation surrounding who will acquire the rights to the World Poker Tour. The deal, which is expected to be completed by the end of the month, will see WPTE receive the $12.3 million less affiliate fees and 5% of future gross gaming revenue.

Peerless Media have guaranteed that this gross gaming revenue will amount to at least $3 million over a three-year period, with their estimates thought to be based on a more stable business model than the proposal put forward by Mandalay Media, which hinged on shares reaching a 61% premium on their closing price on October 26.

It is thought that once ownership has been transferred to the Party Gaming subsidiary, WPTE officials plan to pursue non-poker-related business ventures.
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