SEARCH NEWS:

 

PartyGaming Buys Out Partners

UNITED KINGDOM – As reported by the UK Guardian: "PartyGaming yesterday put the penultimate touch to the overhaul of its relationships with so-called 'skin' operators, buying two of its partners and severing its links with a third.

"The deals were seen as a further alarming development for Empire Online, the fourth and largest skin operator. PartyGaming made a bid approach for Empire a week ago, but the potential target's share price has fallen 20% since then, reducing the company's market value to £260m. Analysts calculate that Empire's negotiating power in the talks is being eroded by the break-up of PartyGaming's skin network.

"Skin operators work by recruiting online gamblers and directing them to the websites of actual operators, such as PartyGaming, owner of Party Poker, the world's biggest poker site. In exchange, the skins collect a slice of the profits generated by the online players.

"…PartyGaming is buying MultiPoker, which has 255,000 registered players, mainly in Scandinavia, for $14.5m (£8.3m) in cash. It will also pay about $4m for another privately owned skin, Intertops Poker, though its owners may continue to recruit players for Party Poker by working as commission-based affiliates.

"Coral Eurobet, which is owned by casino group Gala, has decided to end its relationship with PartyGaming.

"…Yesterday's move leaves only the relationship with Empire Online, the largest skin contributor to Party Poker, to be resolved…"

< Gaming News