World Poker Tour Sold to Gamynia Limited for $9.1 MillionInvestment Vehicle Gamynia Pays $9.075 Million for Most of WPT Assets |
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World Poker Tour Enterprises, owner of the World Poker Tour, today announced it has 
sold most of its operating assets (other than cash, investments, and certain excluded assets) to Gamynia for $9.075 million plus a percentage of future revenues from its WPT and Professional Poker Tour brands, pending stockholder approval.
As of June 28, 2009, the WPT Enterprises had total cash, cash equivalents and investments of $21.3 million. Most of this is not part of the deal and will be kept by WPT Enterprises.
Gamynia will continue to operate WPT TV, sponsorship, distribution and licensing and, significantly, aims to exploit and develop WPT brands in the online gaming market.
It has secured the services of “an industry leading online gaming marketing company Hardway Investments Ltd. which will seek to exploit and develop the WPT brands with the goal of maximizing future revenue opportunities.”
Hardway Investments counts Playtech and Titan Poker among its current clients.
The proceeds from the sale will be kept by the company which plans to use them to develop or acquire a non-poker related business. Company shareholders will not receive any of the proceeds at this time.
Steve Lipscomb, President and CEO of WPT Enterprises, 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.
“The World Poker Tour as a stand-alone entity has struggled to find the appropriate place for its stockholders in this fast evolving market. The World Poker Tour brand continues to grow around the world and has managed to make casinos and online gaming concerns cooperate in unique and mutually beneficial ways. In Gamynia, we have found a partner that already understands and fosters a spirit of cooperation in the online marketplace.
“After the transaction, WPTE will move forward under a new name and will employ our cash in a new venture by developing a new business or combining, through one or more strategic transactions, with companies that have significant unrealized value or growth potential.”
The poker industry has been awash with talk of consolidation in recent months and the sale of WPT Enterprises is a clear example of this trend in action.
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