GigaMedia PartyGaming Looking to Merge

Published Sunday, April 19, 2009 -

After finally closing the door on possible prosecution in the USA, PartyGaming is now on the prowl for new prospects. So the word on the internet that GigaMedia is a possible target of the online gambling giant PartyGaming doesn't really come as a big surprise.
Gigamedia, currently has a market value of $363m and is rumoured to have hired the investment banking firm of Goldman Sachs to find a buyer for the company which includes Everest Poker cardroom powered by Grand Virtual Gaming Alliance technology and fully owned by GigaMedia Limited. Everest Poker sponsors a number of real-world tournaments, including the European Poker Tour. GigaMedia made a profit of around $12million US last year.

GigaMedia,was incorporated in September 1999 as a company limited by shares organized under the laws of the Republic of Singapore, and completed an initial public offering of its shares on NASDAQ, on February 24, 2000. In December 2007, GigaMedia announced a strategic partnership with and investment in leading game development studio Neostorm Holdings Limited, one of the largest independent game developers in South Korea. Some resistance from GigaMedia's shareholders to hold stock in a London-listed company, may create a potential stumbling block to a full merger with PartyGaming. PartyGaming is regulated and licensed by the Government of Gibraltar and by the Alderney Gambling Control Commission.

PartyGaming, has indicated they are looking at various deals available. A spokesperson said recently, "We have made it very clear we believe the industry will consolidate and we will look at opportunities as and when they arise."

CEO of PartyGaming Jim Ryan, said that the group was talking to financial institutions about arranging funding for acquisitions.

Gigamedia announced to it's investors it was "in discussions with several interested parties concerning the possibility of a strategic merger or a sale".

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