Cryptologic buys Casino.co.uk

[jetset]

CASINO.CO.UK SOLD TO CRYPTOLOGIC FOR GBP 3 MILL

Media Corp sells off top domained site and other Internet casino and poker room interests

Online gambling games developer and turnkey provider Cryptologic is starting to spend some of its impressive capital reserves on Internet gambling acquisitions, and this week announced a deal with Media Corp plc for the purchase of the popular gaming portal Casino.co.uk and related Internet casino and poker room assets.

Newly relocated to Dublic, Ireland, Cryptologic said its wholly-owned subsidiary, Gaming Portals Limited, has inked the acquisition agreement with the Internet advertising group. The transaction is earnings accretive from the outset and is valued at about GBP 3 million, with the prospect of an additional payment of GBP 625 000 subject to achieving post-closing performance targets.

GPL will maintain the existing services and will continue to offer current and prospective clients a high-quality portal with excellent advertising opportunities.

Media Corp reiterated that its decision to sell the Casino.co.uk business is based on the need to focus on its online advertising businesses and diversify into other markets, and also to focus on the further development of its gaming portal Gambling.com.

The Casino.co.uk business made gross profits of about GBP 620 000 for the year to end-Sept 2006.

Media Corp and its directors, Jason Drummond and Justin Drummond, have agreed to 2 year restrictive covenants as part of the transaction. The Gambling.com business is carved out from these restrictive covenants.

Commenting on the transaction, Justin Drummond, Chief Executive of Media Corp, said:

"As highlighted in the annual report and accounts for the year ending September 2006, the disposal of the casino.co.uk business is a key part of the overall strategy of the Group to focus on its online advertising businesses and diversify into other markets. This transaction will also enable the Group to focus its resources on the further development and marketing of our leading Global gaming portal Gambling.com.

The new cash raised, combined with the Group's existing GBP 4 million cash balance has created an excellent platform to accelerate growth through acquisitions and investment in the current websites and advertising businesses".

[james01]

Only 3 million for this domain, I would say this is worth a bit more.

[jetset]

Plus a further GBP 625 000 subject to achieving post-closing performance targets....

[Simmo!]

Only 3 million for this domain, I would say this is worth a bit more.

It will be based on a multiple of existing revenue/profit no doubt so if it was making £1-£1.5m p.a then that is probably a fair price IMO.

[Slotster!]

It will be based on a multiple of existing revenue/profit no doubt so if it was making £1-£1.5m p.a then that is probably a fair price IMO.

I agree - if anything it would be overpriced if it was just the domain... The business community woke up and realised that branding was the key online, not a 'traditional' domain name... Ask Ebay, or Bebo, or Facebook or Craigslist or any of the other spectacular traffic sites that didn't bother with what would be 'traditionally' expected.

I mean, auction.com... should be ten times better than Ebay really