Originally Posted on Wednesday Dec 16 3:38:00 GMT 2009
Recent news regarding online gambling businesses shows that GigaMedia Ltd (GIGM) is preparing to sell around 60% of its online gambling software business. This will include Everest Poker. The sale is to a European based online company called Mangas Gambling. The price is set at more than $100 million.
Although GIGA shares were down 33% this year, with the company producing figures for the first quarter of the year so far. However, stock jumped 11% and was trading at $4.20 in pre-market trading.
Mangas will initially pay $100 million to GIGA, making final payment after fair market value of business by 2012. There will also be an option for GIGA to require Mangas to buy the rest of the stake in 2013. Mangas also have the option of forcing a sale starting in 2015.
Currently Mangas’s portfolio includes BetClic, Expekt and Bet-at-Home. Everest Poker will become their main poker site.
This is expected to create an on-line gambling powerhouse in Europe, which will offer poker, sports betting and casinos.
Online gambling in New Zealand will remain largely unaffected by the news.