As reported by: The Washington Post
PartyGaming PLC, the world's largest online poker company, is in talks about acquiring smaller rival Empire Online Ltd., the company said Thursday.

PartyGaming, one of the largest new listings in the past five years on the London Stock Exchange when it went public in June, said it was carrying out due diligence and the terms of any offer would be determined by that process.



"Any offer proposal would depend upon, in particular, PartyGaming being satisfied as to a number of material preconditions, including due diligence and the prospects for Empire's business," it said in a statement to the London Stock Exchange.

The negotiations come less than two months after online gambling firm and bookmaker Sportingbet PLC called off a 790 million pound ($1.4 billion) deal to acquire Empire.

Shares in PartyGaming rose 0.3 percent to 93 pence ($1.65) while Empire's stock fell 1.7 percent to 113 pence ($2.01) after earlier rising to a high of 126 pence ($2.23).

Empire confirmed in a statement that it had received an approach, but declined to comment further.

Gibraltar-based PartyGaming, which runs the partypoker.com Web site, sparked concern that the rapid growth in the online poker market was a bubble about to burst when it warned in September that market growth would slow.

PartyGaming reported a 25 percent rise in half-yearly net profit but the strong earnings figures were overshadowed by the company's accompanying comments that it was having a harder time retaining customers.


Article By: The Washington Post