Not So Fast: Mandalay Media Makes Last Minute Offer for WPTE

Lance Bradley | October 30, 2009

Just as World Poker Tour Entertainment stockholders were sitting down to discuss, and presumably vote on, the $12.3 million offer from PartyGaming another group has put forth a much larger bid.

Mandalay Media, which is not related to the Las Vegas casino of the same name, has offered $35 million for the WPTE assets and has asked the WPTE Board of Directors to postpone any decision on the PartyGaming bid until they’ve given proper consideration to all offers. This is the third offer for the WPTE assets after the original $9 million bid by Gamynia in August of this year.

The new offer consists of $28.5 million in cash and another $5 million in Mandalay Media stock and futures. In a letter to the board Robert Ellin, co-chairman of Mandaly Media stressed how much better his company’s offer was than any other existing offer.

“We are proposing a transaction that provides WPTE`s shareholders a significant premium over both WPTE`s current market price and the current value of the Peerless transaction.There is no doubt that our offer is a “Superior Proposal” as that term is defined under your asset purchase agreement with Peerless,” Ellin wrote.

Peerless is the PartyGaming subsidiary which put forth the original offer.

Mandalay has been responsible for Hollywood blockbusters like Donnie Brasco, I Know What You Did Last Summer and Wild Things. The company also has a hand in mobile entertainment through Twistbox Entertainment.

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