PartyGaming in Merger Talks with GigaMedia

May 7, 2009 - Written By Haley

PartyGaming, which is well known for their online poker room, PartyPoker.com, has been discussing taking over GigaMedia Limited, the company that owns EverestPoker.com. PartyGaming has been wanting to expand, and this just might be what they are looking for. GigaMedia has a current market value or $363 million and has hired an investment banker to find a company to buy the company. Although PartyGaming will not directly discuss the situation, rumors have it that GigaMedia is on the top of their list.

PartyGaming has just recently settled a $105 million law suit with the US, concerning online gambling services that were made before the 2006 Unlawful Internet Gambling Act. The company agreed to a $105 million settlement, and will not be prosecuted. With that in the past, PartyGaming is looking towards a positive future.

If PartyGaming and GigaMedia merge, it could create a giant in the USA Online Poker world. PartyGaming is the 4th largest network, and GigaMedia is the 6th. Merging the two may create a network as powerful and successful as Full Tilt Poker, which ranks second. Also, if the two merged, it could create a powerful path for the return of the US, should the UIGEA be overturned.

A GigaMedia representative told investors that they were in discussion with several interested companies concerning the possibility of a strategic merger, or a sale. GigaMedia was incorporated in 1998 as a company limited by shares organized under the laws of The Republic of Singapore, and completed an initial public offering of it's shares on NASDAQ in 2000. Because this is a London based company, some shareholders may oppose holding stock, which would completely wipe out the opportunity to merge with PartyGaming.