Sportingbet in Talks to Buy Empire Online

Empire Online, operator of the popular online poker room, Empire Poker, said Friday that it was in the midst of discussions with another company regarding a potential £790m buyout. The mystery suitor, Sportingbet, stepped out of the shadows this week and confirmed that it was the other party in the talks.

Sportingbet, sportsbook, casino, and Paradise Poker operator, said that while negotiations are in the early stages, one scenario for the takeover would involve and offer of cash and 270p per share.

Empire Online’s shares have done very well since debuting on the London Stock Exchange in June, climbing from 175p to a close Wednesday at 252.25. Thus, if the 270p per share offer was accepted, it would be at a small premium, but still below Empire’s high of 288p.

Online gaming rivals 888.com and PartyGaming were rumored to have been possible bidders for Empire Online until Sportingbet stepped forward. Could a bidding war be forthcoming? Possibly. No other potential buyers are evident at this time, but it would be no surprise if other online gaming companies showed up to try their hand at wooing Empire Online.

Originally published September 7, 2005