With the final days of the World Series of Poker (WSOP) playing out and the eighth season of the World Poker Tour (WPT) starting this week, poker has taken center stage in Las Vegas. Even with this activity, however, there are rumblings in one of the financial world’s top publications.
The Wall Street Journal on Monday published an article entitled “Deal Me In” by staff writer Brett Arends that asked whether the WPT was for sale. In the article, Arends quotes WPT Enterprises (the WPT’s parent company) Chief Financial Officer Tom Flahie as stating, “We can’t comment… beyond saying we’ve provided confidential data to third parties.” Founder and Chief Executive Officer Steve Lipscomb was reached by Arends in Gibraltar and added, “We’ve had discussions with, and exchanged documents with, some companies that have expressed an interest.” A WPT spokesperson told Poker News Daily, “Our general policy is that we do not comment on matters that are speculation or rumor.”
Arends’ article in the Wall Street Journal does an excellent job in documenting the history of the WPT and points out why it may be appealing to another organization to purchase the business. It also details how, over its seven-year history, the WPT has been one of the catalysts that drove poker to its unprecedented heights, but did not perform well on the bottom line of profitability.
While doling out hundreds of millions of dollars to players who have competed on the WPT circuit over seven seasons, the WPT has lost money over its entire history. In 2005, it reached its apex on the stock market at over $26 per share and was involved in the now-infamous potential buyout from poker legend Doyle Brunson. Once that sale failed to take root, the stock of WPT Enterprises collapsed to the point in which it was nearly de-listed from the NASDAQ after falling below $1 per share. Only recently has the stock stayed above $1 for ten consecutive trading days, securing the future of its listing. Currently, WPT stock is being traded at $1.36 per share.
While Arends’ examination of the WPT is thorough, there are questions as to who is the potential suitor that could pick up the tour. Gaming Intelligence Group has surmised that the possible buyer is the online sports book and poker room bwin, which recently teamed with the WPT to present an event in Venice, Italy. Other suggestions have included Full Tilt Poker, which has sponsored the WPT on Fox Sports Net for the last two seasons, and PokerStars, which is the international broadcast sponsor of WPT broadcasts.
