PartyGaming Cashing In; could become an Attractive Acquisition Target
22 June 2007
You heard it right, the chief executive at PartyGaming, Mitch Garber, as part of his planned series of share sales, has cashed in options worth more than £1.7m towards gifting the company’s employee trust a raft of shares to be awarded to employees.
Party’s recent discussions with the US authorities, from an analyst’s note that was issued, could pave the way for the company to be snapped up by a US gaming or Internet giant. The most likely “end-game” for Party, as the analysts suggest, may come from either one of the Internet giants such as Google and eBay or by US gaming companies such as Las Vegas Sands and MGM who own several large land-based gaming casinos in Las Vegas, USA.
If given the “all-clear” by the Department of Justice, Party could be an “easily palatable bolt-on” with the present share price levels as the buy note from Deutsche Bank suggests. Party could be an interesting investment ahead of possible US licensing, and the note adds: “If efforts to lift the US legacy risk were successful, PartyGaming could become an attractive acquisition target even if Barney Frank’s licensing efforts come to nothing in this session of Congress.
After offloading over 4.3 million shares, Garber has a remaining shareholding of over 4.5 million shares. Following the Deutsche note, Party’s share price rose over 3%. Should the US clampdown on black poker sites intensify, Party could benefit in terms of player acquisition as the note points out. Party could also consider gearing up its balance sheet should the US agree with recent online gaming-friendly proposals that may end up as a regulated market.
PartyGaming has also announced that Garber has gifted 300,000 shares to the company employee benefit trust.
You can find the story on this article at EGaming Review Magazine.com.
This may be the beginning step in the right direction for the ban on US online gambling to be lifted. The US will have much to gain if they consider all the possibilities and act with promptness.
You can find out for yourself what PartyGaming is.
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