PartyGaming shares hit by fresh worries

05.10.2006, 13:31

PartyGaming shares hit by fresh worries

SHARES in beleaguered PartyGaming took a further battering following a report which said it would have to negotiate a new loan facility with its banks within 30 days of new US anti-gaming legislation being approved.

Internet gambling stocks crashed on Monday after strict new laws to crackdown on online betting in the United States were unexpectedly approved by Congress at the weekend.

The value of the sector was halved, and billions of pounds were lost as shares in the London-listed companies tumbled to their lowest-ever levels. Party Poker owner PartyGaming saw its stock slide 58 per cent on Monday and a further nine per cent on Tuesday, as it generates three-quarters of its business in the US...

manchestereveningnews.co.uk

Ukbetting gets takeover approaches

Ukbetting, the online sports information and gaming firm, said on Thursday that it had received a number of informal approaches to take over the company.

The group said in a statement there was no certainty that a formal offer would be made, but declined to make any further comment.

The shares were up 11.3 percent at 62 pence at 10:38 GMT (11:38 a.m. British time), valuing the group at 84.2 million pounds.

Analysts said one of the most likely potential bidders was PartyGaming, which this week suspended all gaming business with U.S players in the face of a ban.

The measure, which had not been expected to pass both the House of Representatives and Senate, will cost the FTSE 100-listed group 77 percent of its revenues, forcing it to try to grow the business in other territories.

"PartyGaming has just lost 77 percent of its business, and has a fairly aggressive new CEO who wants to make acquisitions," an analyst said...

today.reuters.co.uk

PartyGaming drops plans to buy Gamesys

PartyGaming has abandoned plans to buy rival Gamesys, according to reports, as it reassesses its strategy following a 60% plus drop in share price.

The company was thought to be on the verge of a takeover worth £200m until US Congress last week passed a bill banning US gamers from paying for online gambling via credit cards and other forms of electronic payment.

The bill had a massive impact on the gaming market, with several of the world's largest gaming firms experiencing unprecedented loss in value.

Having dropped in value from 107p per share to 41.5p per share since Friday PartyGaming has abandoned its plan to takeover Gamesys although a spokesman for the company said that mergers and acquisitions are still part of its strategy.

nma.co.uk

PartyGaming decision to pull out of US crushes Poker sector

Keeping in mind that the following is based on only a fuzzy understanding of the details which usually stops me from piping in.

There seems to be four reasons mentioned why the Internet bill should not be a major cause for concern (difficulty in enforcement, not applicable to poker sites, WTO, eventual carving out of poker from casino gambling). Plus there is the 270 day window.

Because of the above and maybe other reasons, most sites are doing business as usual.

Some here though point to Party's pulling out as evidence that the reasons for optimism are not as strong as we think. Else why would they do it? Especially before the 270 days...

What I believe matters to them are the fact that flawed or not, the bills passage seems to say that most US Congressman don't want them offering their services to the US. Not only don't they want it, they THINK they have expressed that in their vote. And for a British public company that is good enough. At least for now.

If my take is right that is of course good news for poker players. Because it means that Party's caving doesn't necessarily show that the other sites are showing merely wishful thinking by hanging around. The dignity issue doesn't apply to them. If the law is unworkable, immoral or shouldn't apply to poker, then those are all good reasons for most sites to carry on.

written by David Sklansky

eog.com

PartyGaming Founders Face Big Loss

Four founder members of online gaming company PartyGaming have seen £1.8 billion wiped off the value of their holdings since news broke at the weekend that US Congress had passed the Internet Gambling bill.

The company’s biggest shareholder Anurag Dikshit, saw his 29% stake nosedive from £1.24 billion to £467 million, a loss of £773m in the space of three days. Dikshit recently stood down from the board of the Gibraltar-based company to take on a role as head of research and special projects, with responsibility for creating games.

Two other founders, Ruth Parasol and Russ DeLeon, who each have 14.9% of the gaming group, have seen the value of their stakes fall by £397m since Monday to £239.4m at the close of play yesterday. Vikrant Bhargava, the fourth founder, has also seen his 7% stake tumble in value by £230m to £138.8m.

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05.10.2006, 13:31	#1 (Permalink)
bwaresa Gast Beiträge: n/a Credits: 0 [Check]	PartyGaming shares hit by fresh worries SHARES in beleaguered PartyGaming took a further battering following a report which said it would have to negotiate a new loan facility with its banks within 30 days of new US anti-gaming legislation being approved. Internet gambling stocks crashed on Monday after strict new laws to crackdown on online betting in the United States were unexpectedly approved by Congress at the weekend. The value of the sector was halved, and billions of pounds were lost as shares in the London-listed companies tumbled to their lowest-ever levels. Party Poker owner PartyGaming saw its stock slide 58 per cent on Monday and a further nine per cent on Tuesday, as it generates three-quarters of its business in the US... manchestereveningnews.co.uk Ukbetting gets takeover approaches Ukbetting, the online sports information and gaming firm, said on Thursday that it had received a number of informal approaches to take over the company. The group said in a statement there was no certainty that a formal offer would be made, but declined to make any further comment. The shares were up 11.3 percent at 62 pence at 10:38 GMT (11:38 a.m. British time), valuing the group at 84.2 million pounds. Analysts said one of the most likely potential bidders was PartyGaming, which this week suspended all gaming business with U.S players in the face of a ban. The measure, which had not been expected to pass both the House of Representatives and Senate, will cost the FTSE 100-listed group 77 percent of its revenues, forcing it to try to grow the business in other territories. "PartyGaming has just lost 77 percent of its business, and has a fairly aggressive new CEO who wants to make acquisitions," an analyst said... today.reuters.co.uk PartyGaming drops plans to buy Gamesys PartyGaming has abandoned plans to buy rival Gamesys, according to reports, as it reassesses its strategy following a 60% plus drop in share price. The company was thought to be on the verge of a takeover worth £200m until US Congress last week passed a bill banning US gamers from paying for online gambling via credit cards and other forms of electronic payment. The bill had a massive impact on the gaming market, with several of the world's largest gaming firms experiencing unprecedented loss in value. Having dropped in value from 107p per share to 41.5p per share since Friday PartyGaming has abandoned its plan to takeover Gamesys although a spokesman for the company said that mergers and acquisitions are still part of its strategy. nma.co.uk PartyGaming decision to pull out of US crushes Poker sector Keeping in mind that the following is based on only a fuzzy understanding of the details which usually stops me from piping in. There seems to be four reasons mentioned why the Internet bill should not be a major cause for concern (difficulty in enforcement, not applicable to poker sites, WTO, eventual carving out of poker from casino gambling). Plus there is the 270 day window. Because of the above and maybe other reasons, most sites are doing business as usual. Some here though point to Party's pulling out as evidence that the reasons for optimism are not as strong as we think. Else why would they do it? Especially before the 270 days... What I believe matters to them are the fact that flawed or not, the bills passage seems to say that most US Congressman don't want them offering their services to the US. Not only don't they want it, they THINK they have expressed that in their vote. And for a British public company that is good enough. At least for now. If my take is right that is of course good news for poker players. Because it means that Party's caving doesn't necessarily show that the other sites are showing merely wishful thinking by hanging around. The dignity issue doesn't apply to them. If the law is unworkable, immoral or shouldn't apply to poker, then those are all good reasons for most sites to carry on. written by David Sklansky eog.com PartyGaming Founders Face Big Loss Four founder members of online gaming company PartyGaming have seen £1.8 billion wiped off the value of their holdings since news broke at the weekend that US Congress had passed the Internet Gambling bill. The company’s biggest shareholder Anurag Dikshit, saw his 29% stake nosedive from £1.24 billion to £467 million, a loss of £773m in the space of three days. Dikshit recently stood down from the board of the Gibraltar-based company to take on a role as head of research and special projects, with responsibility for creating games. Two other founders, Ruth Parasol and Russ DeLeon, who each have 14.9% of the gaming group, have seen the value of their stakes fall by £397m since Monday to £239.4m at the close of play yesterday. Vikrant Bhargava, the fourth founder, has also seen his 7% stake tumble in value by £230m to £138.8m.