Although both companies have been rather hush-hush about the details of the bid, PartyGaming's efforts to take over Empire Online have officially fallen through. The online poker partners-turned-rivals have had a rocky past few months, with Empire Online getting the raw end of the deal thus far.

The empire may seem to be falling, but Empire Online is certainly putting up a good fight. Accordingly, the company announced today that it was pursuing legal actions against PartyGaming, in addition to terminating takeover talks with PartyGaming, and, if that weren't enough.

Although, as stated above, neither company released official statements regarding the particulars of the bid offer, the price PartyGaming was originally willing to pay for Empire Online is rumored to be around 135p a share. Party later cut that figure by more than half, with the ultimate bid resting at 60p per share, according to a statement released today by PartyGaming. Commenting on its decision to halt bid talks, Empire Online called PartyGaming's revised proposal “different both in terms of the price and structure and at a level that cannot be recommended."

Instead of just settling for a simple “thanks, but no thanks" in response to PartyGaming's bid offer, Empire Online announced that it would pursue legal action against the online poker giant. After being cut off from PartyGaming's player base in early October, Empire Online began investigating the legal implications of such a move. Today, Empire announced that following these investigations, the company has decided to “institute and vigorously pursue legal proceedings as soon as possible." PartyGaming responded, expressing its confidence in a legal victory.


Although Empire Online's position may be somewhat ill-fated, the company never ceases to put forth an optimistic front. The company took today's announcement as an opportunity to remind investors of recent victories. Empire Online said that, despite the reduced player liquidity that resulted from PartyGaming's move to separate skins from its new-and-improved platform, an average 500 new real-money players have joined the Empire network every day this month. Approximately half of Empire Online's new players have been gained through the newly acquired Noble Poker and Club Dice Casino.

Further striving to assuage investor fears, Empire CEO Noam Lanir said, "Empire Online has in place the foundations for sustainable long term growth ahead of the market, through its unique marketing skills and its multiple platforms. I am delighted in the growth we are seeing in our new platforms and this is testament to the strength of our network. We intend to remain leaders in the online gaming industry and will employ all our efforts to build and grow value for our shareholders."

Judging from Empire Online's stock market volitility, investors aren't convinced. Since floating on the LSE in June, Empire Online has lost two-thirds of its stock value. It will likely take months of consistent growth over the Empire Online network for investors to consider the company a safe bet once again.

Source:  Poker777 Staff

Monday, 21 November 2005