by LTDPipkin
6. May 2009 21:32
According to a recent report in the Sunday Times, Online gaming group Party Gaming owners of top online poker brand - Party Poker and online casino - Party Casino is holding talks on a deal with Nasdaq listed rival Gigamedia owners of World Series of Poker (WSOP) sponsor Everest Poker
Gigamedia, which has a market value of $363m (££246m), is thought to have hired top US investment bank Goldman Sachs, to find a buyer for the whole company or simply its Everest Poker brand.
Party Gaming which this month settled a legal dispute with the US Departmentof Justice (DoJ), is among a small number of parties thought to be negotiating with Gigamedia.
One potential stumbling block of a full merger, however could be the unwillingness of Gigamedia shareholders to hold stock in a London listed company.
Party Gaming which is said to be looking at a number of possible deals, declined to common on the Gigamedia talks but a spokesman said "We have made it very clear we believe the industry will consolidate and we will look at opportunities as and when they arise"
After announcing the nonprosecution agreement with DOJ, Jim Ryan, Party Gaming's chief executive said that the group was talking to financial institutions to arrange funding for future acquistions.
Last month Gigamedia announced to investors it was "in discussions with several interested parties concerning the possiblity of a strategic merger or a sale".
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