GigaMedia (GIGM) To Sell 60% of Online Gambling Software Business to Mangas Gaming
GIGM Hot Sheet
Revenue Growth %: -19.1%
GigaMedia Limited (NASDAQ: GIGM) announced today an exciting strategic alliance with European online gambling leader Mangas Gaming by way of a sale of 60 percent of GigaMedia's online gambling software business to Mangas.
The strategic alliance will see Everest Poker joining the Mangas Gaming family as its primary poker site. Everest Poker, powered by GigaMedia's software, is one of the world's most popular poker sites and the official "felt" sponsor of the World Series of Poker. Everest Poker was named Poker Operation of the Year in 2007 and 2008 by industry journal e-Gaming Review.
"We are thrilled to have Everest Poker join the Mangas Gaming family with its media savvy and land-based casino shareholders and well known platform of gambling brands," stated GigaMedia CEO Arthur Wang. "By partnering with Mangas, we can realize the full value of our poker and casino software business and share the enormous upside of this powerful combination in the large European community."
"This strategic alliance will create an online gambling powerhouse in Europe with top poker, sports betting and casino offerings," stated GigaMedia CEO Arthur Wang.
In accordance with the terms of the strategic alliance, all Mangas poker players will move to the Everest Poker platform creating one of the largest poker player "liquidity" platforms in Europe. Everest Poker will also be able to benefit from the top sports betting offering of Mangas Gaming. In addition, the combined user base of Everest Poker and BetClic - both leading brands in France - strongly positions the alliance to capture potential growth from the soon to be opened and regulated French market, one of the largest in Europe.
Under the terms of the deal, the price of the 60 percent sale will be set at the fair market value of the business as of early 2012. Mangas will make payment in two parts - an up-front cash payment of US$100 million at closing and a final earn-out payment after the 2012 valuation depending upon the fair market value of the business at that time. GigaMedia will continue to hold the remaining 40 percent interest with a put option to sell all or part to Mangas beginning in 2013. Beginning in 2015, Mangas will have a call option on any remaining shareholding held by GigaMedia. For both GigaMedia's put option and Mangas's call option, the price will be determined based upon then fair market value.
The strategic alliance will see Everest Poker joining the Mangas Gaming family as its primary poker site. Everest Poker, powered by GigaMedia's software, is one of the world's most popular poker sites and the official "felt" sponsor of the World Series of Poker. Everest Poker was named Poker Operation of the Year in 2007 and 2008 by industry journal e-Gaming Review.
"We are thrilled to have Everest Poker join the Mangas Gaming family with its media savvy and land-based casino shareholders and well known platform of gambling brands," stated GigaMedia CEO Arthur Wang. "By partnering with Mangas, we can realize the full value of our poker and casino software business and share the enormous upside of this powerful combination in the large European community."
"This strategic alliance will create an online gambling powerhouse in Europe with top poker, sports betting and casino offerings," stated GigaMedia CEO Arthur Wang.
In accordance with the terms of the strategic alliance, all Mangas poker players will move to the Everest Poker platform creating one of the largest poker player "liquidity" platforms in Europe. Everest Poker will also be able to benefit from the top sports betting offering of Mangas Gaming. In addition, the combined user base of Everest Poker and BetClic - both leading brands in France - strongly positions the alliance to capture potential growth from the soon to be opened and regulated French market, one of the largest in Europe.
Under the terms of the deal, the price of the 60 percent sale will be set at the fair market value of the business as of early 2012. Mangas will make payment in two parts - an up-front cash payment of US$100 million at closing and a final earn-out payment after the 2012 valuation depending upon the fair market value of the business at that time. GigaMedia will continue to hold the remaining 40 percent interest with a put option to sell all or part to Mangas beginning in 2013. Beginning in 2015, Mangas will have a call option on any remaining shareholding held by GigaMedia. For both GigaMedia's put option and Mangas's call option, the price will be determined based upon then fair market value.
You May Also Be Interested In
- Dow Chemical (DOW) Wins $2.16B in K-Dow Arbitration
- Mylan (MYL) Launches Generic Bonviva Tabs (RHHBY) in Italy & the U.K.
- Chesapeake (CHK) Shares Surge Amid Report Icahn Now 'Major' Holder
Create E-mail Alert Related Categories
Corporate NewsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
