Mandalay Media Increases Offer to Acquire WPT EnterprisesMandalay Media Competes with Party Gaming for World Poker Tour Enterprises |
|
Twistbox’s parent company Mandalay Media, global producer and publisher of mobile entertainment, recently put forward a proposal to WPT Enterprises in the hopes of opening a discussion about acquiring the company. Today, Mandalay Media has upped its proposal from $35 million in cash and stock to $36.5 million. This consists of $28.5 million in cash, $5 million in Mandalay Media stock, and perpetual revenue participation rights which are guaranteed to be at least $3 million.
Mandalay`s Co-Chairman Robert Ellin stated that the company’s proposal is a “Superior Proposal” – as the term defined under the asset purchase agreement with Peerless, a subsidiary of PartyGaming. The previous proposal from Peerless does not provide payment or distribution to WPT`s shareholders, whereas Mandalay would provide the WPT shareholders with cash and stock, which is now estimated at $1.77 per share.
The proposal urged the WPT board of directors to postpone its Special Meeting of Shareholders which was to take place today, in order to give its proposal some consideration.
The letter stated,
“Since the announcement of your proposed asset sale with Peerless Media (Peerless), Mandalay Media, Inc. (OTC-BB: MNDL) (Mandalay) has given serious consideration to a combination of Mandalay and WPT Enterprises, Inc. (WPTE). We believe a strategic combination of Mandalay and WPTE would deliver significant value to our respective shareholders, and position the combined company for substantial future growth.”
It also outlined its reasoning for why the acquisition would be a success, which included:
“Mandalay Media can leverage its mobile platform and operator relationships throughout the world to provide a full mobile social media and sports / poker playing experience.
“Mandalay Media will tap into Facebook and additional social media websites to develop and publish a more compelling and branded next generation poker experience that [sic] currently offered.
”Mandalay Media through its existing platform technologies can provide a “connected” game experience for the internet as well as third screens (mobile phones). Players can always be part of the WPT community wherever they are.
“Mandalay Media through its Play for Prizes platform is uniquely positioned to deliver mobile and internet skill with prizes game play. As gambling becomes legal, we will already be positioned to immediately offer that functionality to the WPT community.”
The final points above may interest mobile publisher Hands-On Mobile, the licence-holder of World Poker Tour mobile games and applications.
Peerless Media proposed to pay WPTE $12.3 million in the deal, as well as five percent of the company’s future gaming revenues — a total equal to at least an aggregate of $3 million in the three years following the close of the deal.
Copyright © 2001-2024
CardPlayer.com. All rights reserved.
