WPT Enterprises, Inc, owner of the World Poker Tour has recently informed that Gamynia Limited has agreed to buy all of the Company’s operating assets other than cash, investments and certain assets. According to WPT Enterprises, Gamynia will pay the Company $9,075 million plus a percentage of future incomes earned through the World Poker Tour and Professional Poker Tour brands.

 

WPT Enterprises, Inc will sell its television library, including all related intellectual property rights, brand names, trade names, certain assumed contracts and physical personal property. WPTE will keep its cash and cash equivalents, investments in debt securities and put rights, certain other investment and litigation assets, and future foreign revenues from the sponsorship of Seasons Four, Five and Six of the World Poker Tour and Season One of the Professional Poker Tour by PartyGaming and the license of Season Seven of the World Poker Tour to PokerStars. The Company will also preserve its office lease obligations and all of its employee obligations. The asset purchase transaction is subject to specified closing conditions. The Company’s obligation to complete the sale is subject to the approval by the Company’s stockholders; however, both parts are expecting to complete the transaction by the fourth quarter of 2009.

 

Under ownership of Gamynia, the World Poker Tour and Professional Poker Tour brands will continue all operations including the Company’s television, sponsorship, distribution and licensing and online gaming market. Gamynia has secured the services of Hardway Investments Ltd, an industry leading online gaming marketing company which will seek to increase the productivity and develop the WPT brands to maximize their profits. Hardway’s list of existing clients includes several renewed online gambling operators such as Playtech and Euro Partners.

 

The proceeds from the sale will be held by WPT Enterprises, Inc and invested in non-poker related business. The Company does not currently intend to distribute any proceeds from the asset sale to its stockholders.

 

“We believe this transaction will enable the World Poker Tour to realize its full potential across both its existing businesses and the lucrative online gaming market. Gamynia and its partners possess highly complimentary resources which will help it invest in and effectively integrate with the World Poker Tour efficiently and profitably,” said Steve Lipscomb, President and CEO of WPT Enterprises.

 

“The World Poker Tour was the catalyst for the 2003 poker boom in the United States that quickly gave rise to a global poker phenomenon. The massive international business markets that have evolved from that phenomenon have been dominated and driven by the lucrative online gaming business. The World Poker Tour as a stand-alone entity has struggled to find the appropriate place for its stockholders in this fast evolving market. The World Poker Tour brand continues to grow around the world and has managed to make casinos and online gaming concerns cooperate in unique and mutually beneficial ways. In Gamynia, we have found a partner that already understands and fosters a spirit of cooperation in the online marketplace. We believe that Gamynia and Hardway Investments Ltd. are uniquely positioned to join with our current partners and guide the World Poker Tour brands to fulfill their potential in the global poker marketplace. Our Board of Directors believes that WPTE shareholders will derive more benefit from the WPT and PPT brands in cooperation with these significant online gaming entities. Of particular importance for our partners is the fact that Hardway Investments has an established track record of creating revenues and value in the online gaming marketplace. We should benefit for many years from our participation in those revenues streams. After the transaction, WPTE will move forward under a new name and will employ our cash in a new venture by developing a new business or combining, through one or more strategic transactions, with companies that have significant unrealized value or growth potential” added Lipscomb.