Online Casino News and Gambling News

April 22, 2009 - PartyGaming Looking To Expand With Gigamedia A Possibility

In terms of PartyGaming’s settlement with the US almost a month ago, PartyGaming has agreed to pay an amount of $105 million to the US Department of Justice. This settlement follows PartyGaming having violated the online gambling laws in the US. A term of this settlement was that PartyGaming would not be prosecuted for violating the online casino gambling laws.

Now that PartyGaming has settled with the US they are looking for ways to expand. Goldman Sachs has been hired by Gigamedia to endeavour to sell their Everest Poker brand, if not their entire company. It does not seem likely that Gigamedia shareholders would allow a merger between the company and rival PartyGaming. However, talks are in the process of taking place. PartyGaming is not the only company that is rumored to be negotiating to acquire Gigamedia.

A spokesman for PartyGaming has said that they have made it quite clear that they believe that the industry will consolidate and they will look at opportunities as and when they arise. He refused to speak directly about the possibility of taking over Gigamedia.

Meanwhile, PartyGaming will not start making a decision on which companies they should look into purchasing until they are able to find funding to enable them to do so. Securing funding for future acquisitions is their main priority at the moment.

Although PartyGaming did not receive the increase in price that they expected to get in view of their settlement with the US they closed on Friday as the highest traded online gaming company on the London Stock Exchange.

 

 

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