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PartyGaming Divorces from Skin Companies
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UNITED KINGDOM - As reported by the UK Guardian: "Investor confidence in internet poker hit a new low yesterday as PartyGaming, the market leader, effectively forced a divorce on the so-called "skin" companies whose online marketing skills have helped to fuel the game's astonishing growth.
"PartyGaming's decision to sever long-standing partnerships with these 'white-label' operators will be seen as the start of intense competition among poker sites. Until now, most sites have concentrated on recruiting newcomers to online gambling. Yesterday's move may herald competition for established players.
"Shares in Empire Online, potentially the biggest loser from PartyGaming's decision, fell 34%. A month ago, when it received a takeover approach from Sportingbet, Empire was valued at over £800m; it is now worth £350m.
"PartyGaming shed more than 11% to hit a new low of 71p, almost 40% below its June flotation price."
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