In breaking news from Wall Street, it was revealed that World Poker Tour Enterprises (WPTE) has received an “alternative acquisition proposal.” On August 3rd, it entered into an agreement with Gamynia Limited in a deal that was to be finalized during the fourth quarter.
The contents of the alternate bid and the company that submitted it have not yet been made public. A filing made to the Securities and Exchange Commission (SEC) on Tuesday simply reads, “The Company’s Board of Directors has received an alternative acquisition proposal and is following the process required by the Purchase Agreement. Until the process required by the Purchase Agreement is completed, the Company will delay the filing of a preliminary proxy statement with the SEC.” Additional information will be released on the bid in the near future.
An August 3rd filing by WPTE to the SEC outlined the parameters of the sale of its assets to Gamynia for $9.075 million plus a percentage of revenue derived from use of the World Poker Tour and Professional Poker Tour brands. The WPTE agreed to hand over its television library, intellectual property rights, and brand names to Gamynia. WPTE will retain its cash on-hand and “future foreign sponsorship revenues from the sponsorship of Seasons Four, Five, and Six of the World Poker Tour and Season One of the Professional Poker Tour by Party Gaming and the license of Season Seven of the World Poker Tour to PokerStars.”
Upon completion of the sale, WPTE officials noted that the company will pull itself out of the poker market and will not distribute any proceeds from the sale to its shareholders. The company’s stock, found on the NASDAQ under the symbol “WPTE,” was trading at $1.09 at the time of writing, up $0.17 on the day, or 18.49%. It spiked in early trading to $1.06 before trending up to its current level. The alternative bid may be the cause of the dramatic increase in share price on the day.
The filing outlining the sale explained that the WPTE’s “obligation to complete the asset sale is subject to the approval by the Company’s stockholders of the asset sale transaction and other customary closing conditions.” A meeting of stockholders was to be held and WPTE officials noted that investors representing 39% of the company had already agreed to vote in favor of the Gamynia acquisition. The filing on Tuesday explained, “Under the Purchase Agreement, the Company is to file a preliminary proxy statement with the SEC within 21 days of signing the Purchase Agreement.” The 21-day period has not yet elapsed, apparently leading to the second bid.
Gamynia had secured the services of Hardway Investments, which works with online gambling behemoths Playtech, Casino Tropez, Europa Casino, Titan Poker, and the affiliate network Euro Partners. WPTE Founder, President, and CEO Steve Lipscomb commented in the press release announcing the sale, “Of particular importance for our partners is the fact that Hardway Investments has an established track record of creating revenues and value in the online gaming marketplace. We should benefit for many years from our participation in those revenues streams.”
Under the specifications of the sale, should it be completed, the WPTE will change its name and continue operations. In the meantime, WPTE announced last week that it had entered into a pair of sponsorship agreements for televised and non-televised poker tournaments in Europe. The agreement lasts for two seasons with an option for a third and begins in October. The sponsor in question, which was not revealed in the filing, will also serve as the presenter of WPT Season VII in Europe.
Action on the World Poker Tour resumes on Saturday from the Bicycle Casino for the annual Legends of Poker event. The $10,000 buy-in tournament will crown a champion four days later.
