In breaking news from the World Poker Tour (WPT), its parent company has sold the roving tournament series for $9.075 million plus a percentage of future revenues to Gamynia Limited. Recently, the WPT recorded its second straight month of profitability.
Its complete library of WPT episodes and intellectual property are just two of the assets that Gamynia Limited will absorb as part of the sale. The current ownership of the WPT will continue to receive revenues associated with “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.” The parent company of the WPT plans to use the $9.075 million in newfound revenue for business ventures that are unrelated to poker.
The sale will likely be completed during the fourth quarter of 2009, but must first be approved by a majority of the company’s stockholders. A special meeting to ratify the sale will be held and, in the meantime, the WPT has secured 39% of its stockholders as “yes” votes. WPT Founder, President, and CEO Steve Lipscomb commented in a market update distributed late Monday, “We believe this transaction will enable the World Poker Tour to realize its full potential across both its existing businesses and the lucrative online gaming market. Gamynia and its partners possess highly complimentary resources which will help it invest in and effectively integrate with the World Poker Tour efficiently and profitably.”
Gamynia has already reached out to Hardway Investments, which, according to the same release, “will seek to exploit and develop the WPT brands with the goal of maximizing future revenue opportunities.” Hardway’s existing clients include some of the internet gambling industry’s marquee names like Playtech (which owns and operates the popular iPoker Network), Casino Tropez, Titan Poker, and Europa Casino. It also works closely with the affiliate group Euro Partners. Hardway is based in Antigua and brings a significant amount of internet gambling experience to the WPT brand.
WPT Enterprises will retain its cash on-hand, debt investments, office leases, and “employee obligations.” No proceeds from the sales will be distributed to WPT Enterprises’ stockholders. Its stock is traded on the NASDAQ under the symbol “WPTE” and was down $0.41 at the time of writing on Tuesday, or 27%, to $1.08. WPTE closed trading on Monday at a price of $1.49, but the release made to Business Wire was not published until after the NASDAQ had ceased trading for the day. After the sale is completed, WPT Enterprises will continue operations under a new name. The company plans to use its cash leftover from the poker business to enter into a joint venture or other business relationship with a new company.
The WPT is in the midst of filming its eighth season, which will once again air on Fox Sports Net. Its next tournament kicks off on August 22nd from The Bicycle Casino in Los Angeles, home of the Legends of Poker. The $10,000 buy-in tournament crowns a champion four days later. Last year, poker pro John “The Razor” Phan dominated the field of 373 players and earned a $1.1 million first place prize. He defeated online poker sensation Amit “amak316” Makhija heads-up in a final table that also featured Zachary Clark, Paul Smith, Trong Nguyen, and Kyle Wilson.
Attendance at the kickoff U.S. event of Season VIII of the WPT was down sharply. Just 268 players turned out for the annual Bellagio Cup, down 40% from the 446 that took to the felts at the storied Las Vegas casino in 2008. In the end, Team PokerStars Pro member Alexandre Gomes defeated Faraz “The-Toilet” Jaka heads-up to earn $1.2 million.