PARTYGAMING DEALING IN ONLINE GAMBLING PROPERTY
29 December 2006
By Richard Blackden
Last Updated: 6:38pm GMT 29/12/2006
Troubled Internet gambling group PartyGaming says the acquisition of assets from smaller rival Empire Online for about $66m will immediately lift profit next year.
In the first round of consolidation in the industry, PartyGaming is buying several assets from Empire, including NoblePoker.com, EnterCasino.com and Carnivalcasino.com. PartyGaming will pay for the sites by issuing just over 115m new shares, the company said today.
The deal should help PartyGaming reach more customers through Empire’s marketing operations, which uses software to direct punters to various poker and casino sites in exchange for a slice of the revenues generated. Mitch Garber, chief executive of PartyGaming, said the deal adds “strong management with excellent marketing skills that will help us accelerate our promotional plans”.
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