Online Casino Breaks Off Negotiations
Much has been written about Party Gaming’s recent attempts to acquire Empire Online. Earlier this week, spokespersons for both online casino companies announced that the negotiation talks have reached an impasse. Empire Online left the negotiating table because they felt that Party Gaming is trying to lowball them. Party Gaming’s offer was in the neighborhood of 370 million pounds, which means that online casino company would be essentially paying 60 ponds per share. This is much lower considering that the online casino company launched the stock at 175 pounds a share.
I bet that right about now, Empire Online is wishing they had accepted Sportingbet online casino offer back in September, which was estimated at 790 million pounds. Empire Online used to be one of the four online casino operators using Party Gaming poker software platform at several of their online casinos. Over the last month, Party Gaming disassociated itself from its partnering online casino sites, moving their account holders to a new software platform. This stands to hurt Empire Online considerably, since it leaves the company with a much smaller player pool.
Party Gaming has taken over a couple of its affiliated online casino operators, while ending ties with a third one. This has left Empire Online on the outside looking in, which made the company willing to entertain offers in the first place. Now that negotiations have broken off, Empire Online is examining legal actions against Party Gaming. Since the launch of the new online casino poker platform, Party Gaming has registered a daily increase of 10% in poker revenues. On the other hand, things haven’t been going so well for Empire Online, which has registered a reduction in poker revenues.