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View Full Version : Why wasnt Party bought out?

PartyGirlUK
10-12-2006, 01:29 AM
The main capital of a poker site is its playerbase, imo. AFAIK the main reason Party pulled out of the US market is because they are publicly listed in London and as such have to be very strict about complying to laws of the USA. Party without AMericans is worth waaaay less than Party with them. So why didnt some private individual/venture capital firm buy out party for more than the market value, but less than the intrinsic value with Americans?
iH8poker
10-12-2006, 01:42 AM
[ QUOTE ]
The main capital of a poker site is its playerbase, imo. AFAIK the main reason Party pulled out of the US market is because they are publicly listed in London and as such have to be very strict about complying to laws of the USA. Party without AMericans is worth waaaay less than Party with them. So why didnt some private individual/venture capital firm buy out party for more than the market value, but less than the intrinsic value with Americans?

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I was wondering the same thing but could not find info on the current market value of party. All I know is that it is about 70% less.

Another thing that you got to consider is that investors believe party to be a little 'shaddy', to be vague. They have a fairly large loan due soon and no disposable funds to pay it (it seems). Party lost a ton of money while they developed their software (it seems) and just started making money hand over fist, about a year and a half ago, maybe two and a half.

The officers are vague on plans to repay, considering the mass cash outs. BTW, Party does not have as much money as you might think for cashouts. Pokerstars is much safer, BY A LONG SHOT. I would cash out all funds more than $5k now...and honestly, all of it. Once Pokerstars overtakes party as 'loosest site on the net', which will happen by next Friday, then foreigners may switch too. I think party will have 8000 to 9000 players at peak hours by the end of the month. Party is cash poor at the moment, for its size and expected cash out needs, unlike stars which sperates deposits from operating funds.

It is difficult for large organizations to downsize fast enough to not lose tons of money (ei, should I give Me a pay cut? How long can I wait to give Me a paycut?). Party is in serious trouble.

What I would like to see done...please sell/license their software. They probably won't do it, but it's pretty good software, especially compared to wsex. I think wsex really just needs to buy some other, rather than this slow fixing process, but it's not THE worst (I think).

iH8poker
10-12-2006, 01:45 AM
PartyGirlUK
10-12-2006, 09:23 AM
Degen,

if they wait even a month, surely all their American customers will have cashed out, and will be somewhat reluctant to return to the now small network that is party poker? i.e., time is of the essence.
Dunkman
10-12-2006, 09:27 AM
Wouldn't it be smarter for said group to wait for the stock to finish crashing then buy them out for pennies on the dollar?
PartyGirlUK
10-12-2006, 10:52 AM
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Wouldn't it be smarter for said group to wait for the stock to finish crashing then buy them out for pennies on the dollar?

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No, because by the time this happened their network capital would have been destroyed.
derosnec
10-12-2006, 10:55 AM
PE and VC firms have contacted Party but are having trouble understanding the emails.
BluffTHIS!
10-12-2006, 10:57 AM
Party acquired their US player base over many years and as a result of the expenditure of a lot of marketing dollars. Unless they have some play to take themselves private, then they should be looking to sell that player base and a software license to some other company that is a privately held one. Otherwise in short order they won't have anything to sell. Perhaps though they are in fact negotiating this right now.
The DaveR
10-12-2006, 11:39 AM
b/c an LBO strategy involves taking the company public again.
Guthrie
10-12-2006, 12:24 PM
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PE and VC firms have contacted Party but are having trouble understanding the emails.

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Rimshot.
NLSoldier
10-12-2006, 03:19 PM
Why doenst stars just buy party. Combine party software and fish with stars support and willingness to let americans play.

it would be too good to be true!
Canard
10-12-2006, 03:26 PM
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PE and VC firms have contacted Party but are having trouble understanding the emails.

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On the plus side, at least they now know never to disclose their passwords to anyone...
mgobluefb
10-12-2006, 03:33 PM
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PE and VC firms have contacted Party but are having trouble understanding the emails.

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LMFAO
MagCFO
10-12-2006, 03:36 PM
it's a pretty risky investment to say the least.

The seller thinks it's worth more than a buying is willing to risk I'd bet.

I read something about SportingBet doing some kind of deal with heavy incentive based on future results.
PairTheBoard
10-12-2006, 03:39 PM
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b/c an LBO strategy involves taking the company public again.

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?

PairTheBoard
mgobluefb
10-12-2006, 03:48 PM
PartyPoker's U.S. customer base will shift to PokerStars. After a series of events, Lee Jones will take over the world.
Greg Miller
10-13-2006, 03:13 AM
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Why doenst stars just buy party. Combine party software and fish with stars support and willingness to let americans play.

it would be too good to be true!

[/ QUOTE ]

Ugh. Why would they use Party's software?
NLSoldier
10-13-2006, 03:20 AM
[ QUOTE ]
[ QUOTE ]
Why doenst stars just buy party. Combine party software and fish with stars support and willingness to let americans play.

it would be too good to be true!

[/ QUOTE ]

Ugh. Why would they use Party's software?

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because its the fastest?