In response to media speculation surrounding the ongoing PartyGaming-Empire Online saga, Party released a statement clarifying the company's intentions in relation to its competitor and former partner. According to the announcement, PartyGaming is currently in early negotiations with Empire regarding a potential takeover bid for Empire Online. However, PartyGaming was quick to add that the approach is preliminary and non-binding.

PartyGaming has had a rocky past few months. After experiencing the effects of lowered investor confidence in the online poker sector, as well as competition from partner companies such as Empire, PartyGaming made a radical move to reinforce its hold on the online poker market. In early October, PartyGaming cut so-called “white label" sites, such as Empire Online's proprietary online poker site, Empire Poker, from PartyPoker's multi-million-strong player base. Empire immediately felt the brunt of the move, but buffered the fall by investing efforts in newly acquired ventures, including newbie online poker site Noble Poker.

Since launching its new platform exclusively for PartyGaming users, the company has experienced an upswing in investor interest, and consequently, a rise in share value. PartyGaming apparently feels that now is the time to extend a hand to Empire, following months of media speculations that PartyGaming had an interest in acquiring the company. PartyGaming is not the first online gaming company to come forth with a takeover bid. Empire was previously courted by Sportingbet, but bid talks ceased in September.

Source:  Poker777 Staff

Friday, 04 November 2005