Everest Poker Sale Completed As Revenue PlummetsYear-on-Year Poker Revenue Down 30 Percent at Everest Poker As Sale of Company Completed for Initial Payment of $100 Million |
|
GigaMedia, owner of Everest Poker, yesterday completed the sale of 60 percent of its gambling software business to Mangas Gaming for an initial payment of $100 million.
Mangas Gaming is jointly owned by media mogul Stephane Courbit’s Lov Group and Societe des Bains de Mer de Monaco which owns the world famous Monte Carlo Casino (pictured).
The company also owns the Betclic and Expekt online gaming businesses.
The initial payment to GigaMedia will be followed by a final, currently undetermined, earn out payment in 2012 and Mangas will have the option to purchase the remaining 40 percent of shares from 2013.
GigaMedia chief executive officer Arthur Wang said, "We are very pleased to join our Everest Poker business with Mangas Gaming to create one of Europe’s largest and best gaming platforms.
“Together we have the size and scale to claim top market share in the large European Community, providing the highest entertainment value for our players and thereby driving the best investment value for our shareholders."
The sale went through as GigaMedia announced its fourth quarter and full year results for 2009 which showed poker revenue down 21 percent in the fourth quarter of 2009 to $18.9 million compared to the same period of 2008.
However compared to the third quarter of 2009 poker revenue was up 20 percent in the fourth quarter.
Fourth quarter poker revenues accounted for 64 percent of the business unit’s total fourth quarter 2009 revenues while active depositing real-money customers were approximately 173,000 during the fourth quarter, up 11 percent from the previous quarter.
For the full year 2009 poker revenues decreased 30 percent to $73.7 million from $104.5 million.
In its statement the company said, “Results of the gaming software business in 2009 were in line with industry trends, reflecting lower player activity levels in poker and casino on the economic downturn in Europe and strong competitive pressures.”
Everest Poker is currently embroiled in a lawsuit with Harrah’s Entertainment over the use of its logo at the World Series of Poker.
Copyright © 2001-2024
CardPlayer.com. All rights reserved.
