PartyGaming to Buy Assets of Empire Online

What better day to kiss and make-up than Valentine’s Day?

Well, maybe they aren’t about to pick out drapes and buy a puppy together, but PartyGaming and Empire Online have reached a settlement in their three month old legal dispute. The problem started when PartyGaming suddenly ended its relationship with its “skin” poker rooms, rooms which shared tables with PartyGaming, creating a sort of mega-poker room on the internet. Empire Poker, Empire Online’s skin, while it retained its own customers, instantly lost tens of thousands of players from the tables it shared with PartyGaming and the other skins.

Empire Online warned investors that it would fall short of financial targets as a result of PartyGaming’s action and, as one would expect, its stock price tumbled. Empire Online then sued PartyGaming, claiming that it unfairly inflicted damage as a result of the action.

Friday, February 10, Empire Online said it was close to a settlement with PartyGaming.

Tuesday, February 14, PartyGaming announced that a settlement had been reached. The company will purchase the business, assets, intellectual property, and player databases of Empire Poker and AceClub.com for $250 million. This includes both the Empire Poker brand and Empire Poker website. PartyGaming is, in effect, absorbing its former skin.

Empire Poker intends to concentrate its ongoing efforts in operating Noble Poker and Club Dice Casino.

The deal will not be finalized until it is officially approved by shareholders on March 6, but Empire said that shareholders representing 56 percent of its shares are already onboard.

Originally published February 14, 2006