Empire Online sues PartyGaming

[maxfalcon]

The gaming shares stunt continues...

Internet gaming website Empire Online has acrimoniously cancelled takeover talks with PartyGaming and launched a legal action against the operator of PartyPoker after it ringfenced its customers from rival sites.

Full article: http://business.timesonline.co.uk/ar...882098,00.html

[mary]

A valuable lesson for all investors in online gaming companies: you gotta find out who has actual control. Empire was totally vulnerable to Party's goodwill.

One thing I always look for when reading prespecti is who is the source of the software and hosting? Angelciti, for example, does not have its own software; but they never say that in their press releases.

SO, is that a new word, "ringfenced"?

[maxfalcon]

Next parts of the story:

http://business.guardian.co.uk/story...647787,00.html

PartyGaming dismissed the threat in the strongest possible terms. "They are clutching at straws," said a spokesman. "To the extent that any action is forthcoming, PartyGaming is highly confident of a successful outcome."

[scrollock]

although party has screwed empire over i think empire should take the blame for the position it is in.

the owners of empire have shown desperation in trying to cash in on the group, first of all they buy some wholly inadequate casinos off another group, in an attempt to shore up it own customer database, while trying to flog the company to sportingbet who turned it down.

then they go cap in hand to party, who then ringfence the customers away from empire (maybe a tit for tat move from party because of empire trying to aquire its own customers ?)

then party downgrade the initial offer, after sportingbet gives empire the brush off, what do they expect ? its called business and the law of supply and demand.

if theres a desperate seller and only one person willing to buy, then buyer can basically name their own price.

IIRC wasnt empire in talks with party and sportingbet at the same time? if so was that some kind of attempt from empire to push up the inital offer from party? if it was then it has backfired and they deserve to be in the positon they now find them selves in.

[scrollock]

empire knew that the relationship with party was under threat before they floated.

http://www.ateonline.co.uk/60/75/articles/4436.php

i think that is important info, especially since shares fell by 34% when it was annouced.

so essentially empire has ripped off its investors when it floated.

empire you deserve everything that is happening to you

[titanicbar]

I run Getminted I feel damage has been created by these recent actions - software suppliers are concernced about enabling an Empire. Partners of the larger size we work with at Cashcade are concerned about us treating them like an Empire. Good business around the world online or offline is built on relationship building not destroying them Party benefited hugley from Empire's input pre float and vice versa. It amazes me no deal could be structured to create greater value in the future for both companies.