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  1. #1
    elgoog's Avatar
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    Default GigaMedia: Strategic Alliance with European Leader by Sale of 60% of Software Unit

    GigaMedia (Everest) : Strategic Alliance with European Leader by Sale of 60% of Software Unit

    HONG KONG, Dec. 16 /PRNewswire-Asia-FirstCall/ -- GigaMedia Limited (NASDAQ: GIGM) announced today an exciting strategic alliance with European online gambling leader Mangas Gaming by way of a sale of 60 percent of GigaMedia's online gambling software business to Mangas.

    Mangas Gaming is jointly owned by former media boss Stephane Courbit's Lov Group and the world renowned Monte Carlo Casino owner Societe des Bains de Mer de Monaco, controlled by the Principality of Monaco. Mangas has an extensive European gambling portfolio, including BetClic, Expekt, and Bet-at-Home, together offering sports betting, poker and casino services to over four million registered users in over 25 countries.

    The strategic alliance will see Everest Poker joining the Mangas Gaming family as its primary poker site. Everest Poker, powered by GigaMedia's software, is one of the world's most popular poker sites and the official "felt" sponsor of the World Series of Poker. Everest Poker was named Poker Operation of the Year in 2007 and 2008 by industry journal e-Gaming Review.

    "We are thrilled to have Everest Poker join the Mangas Gaming family with its media savvy and land-based casino shareholders and well known platform of gambling brands," stated GigaMedia CEO Arthur Wang. "By partnering with Mangas, we can realize the full value of our poker and casino software business and share the enormous upside of this powerful combination in the large European community."

    "This strategic alliance will create an online gambling powerhouse in Europe with top poker, sports betting and casino offerings," stated GigaMedia CEO Arthur Wang.

    In accordance with the terms of the strategic alliance, all Mangas poker players will move to the Everest Poker platform creating one of the largest poker player "liquidity" platforms in Europe. Everest Poker will also be able to benefit from the top sports betting offering of Mangas Gaming. In addition, the combined user base of Everest Poker and BetClic - both leading brands in France - strongly positions the alliance to capture potential growth from the soon to be opened and regulated French market, one of the largest in Europe.

    Under the terms of the deal, the price of the 60 percent sale will be set at the fair market value of the business as of early 2012. Mangas will make payment in two parts - an up-front cash payment of US$100 million at closing and a final earn-out payment after the 2012 valuation depending upon the fair market value of the business at that time. GigaMedia will continue to hold the remaining 40 percent interest with a put option to sell all or part to Mangas beginning in 2013. Beginning in 2015, Mangas will have a call option on any remaining shareholding held by GigaMedia. For both GigaMedia's put option and Mangas's call option, the price will be determined based upon then fair market value.

    "The clear trend in Europe toward individually regulated markets and the already competitive marketplace means there are tremendous advantages to having a European partner like Mangas," stated GigaMedia President Thomas Hui. "Mangas Gaming's unrivaled local knowledge and ability to leverage its high value strategic shareholders offers tremendous upside."

    "Everest is an excellent fit with our group and the partnership will benefit both companies and our customers," said Mangas CEO Isabelle Parize. "Everest expands our presence in the world of poker with reliable, trusted solutions and a leading brand, strengthening our position as a major European player in both the poker and sports betting fields."

    The transaction is subject to relevant regulatory and gaming authority approvals and other customary conditions on close. The company currently expects the transaction to close in the first quarter of 2010. GigaMedia expects to book a substantial one-time gain upon the sale.

    Conference Call and Webcast

    GigaMedia will hold a conference call at 9:00 p.m. Taipei/Hong Kong Time on December 21, 2009, which is 8:00 a.m. Eastern Daylight Time on November 21, 2009 in the United States, to discuss the transaction and the company's financial results. Individual investors can listen to a webcast of the call at http://ir.giga.net.tw,

    http://in.sys-con.com/node/1222571
    http://www.rttnews.com/Content/QuickFac ... ck%20Facts
    http://www.itnewsonline.com/showprnstor ... ryid=79785

  2. #2
    Anthony's Avatar
    Anthony is offline GPWA/APCW Program Director
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    $100 Million, big money for 60%!
    I am here to help if you have any issues with an affiliate program.
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  3. #3
    Shaun O'neill is offline Former Affiliate Manager
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    Wow what a deal should be very interesting to se ehow this plays out.

    Shaun

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