PartyPoker Parent Company Considers Selling PlatformOffloading Brand Could Boost Stock Price |
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Could one of the most recognizable brands in online poker be up for sale? That may be the case, according to recent reports.
Entain, the owner of PartyPoker and other online gaming brands like Ladbrokes, bwin, and numerous other platforms, is reported to be exploring selling the online poker giant. Sky News reported on Tuesday that the company has hired Oakvale Capital to begin exploring a potential sale.
“The business, which has seen a mass exodus of customers in recent years, is non-core to Entain’s business,” the outlet reported.
Details On The Potential Sale
Beyond a shift in focus, the company is also dealing with activist investors who are looking for the company to boost the company’s share price. Sky reported that industry sources believe the online poker site could be valued at around £150 million ($191.8 million).
The move seems to fit with the site’s direction in recent years. Party has lost several ambassadors and the platform’s poker blog isn’t updated often. Entain shares have dropped more than 35% over the last year as well and the company has faced several regulatory issues.
PartyPoker was launched in 2001 and became one of the leaders in the industry and a regular sponsor of the World Poker Tour during the television show’s early years. WPT commentator Mike Sexton was a co-founder of the brand and Entain (then known as Bwin Interactive Entertainment AG) even owned the tour from 2009 to 2015.
So far the company hasn’t commented on a possible sale of the online poker operator. The brand has faced significant competition on the global online poker market with much bigger rivals like PokerStars, GGPoker, and others pulling in much higher player traffic.
However, the company may also be an attractive target for a gaming company looking to revive the brand. Entain also partners with the BetMGM online poker platform in the U.S., meaning a potential suitor would gain access to these key North American markets.
The international brand also ranks near the top 10 international poker sites in North America. The market continues to see some growth as more states like New York and possibly other Canadian provinces consider legalization.
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