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WPT Enterprises Sells to Peerless Media Despite Third Offer

Peerless Media Succeeds in WPT Enterprises Deal

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Party GamingWorld Poker Tour Enterprises (NASDAQ WTPE) has closed its deal with Peerless Media, a subsidiary of Party Gaming, and fully agreed to sell nearly all of its substantial assets — other than cash, investments, and certain other assets — to the company.

Despite a third offer being put on the table from Mandalay Media last week, where in a second proposal the company offered to pay roughly three times the amount that Peerless Media was offering, WPT Enterprises decided that it was not a “Superior Proposal” and went with Peerless in the end.

The company stated, “On October 30, 2009, WPTE received a modified written offer from Mandalay Media (the ‘Modified Mandalay Proposal’). On October 31, 2009 the board of directors of WPTE reviewed the Modified Mandalay Proposal and concluded that it was not a Superior Proposal.”

Peerless Media will pay WPTE $12.3 million in the deal, as well as 5 percent of the company’s future gaming revenues — a total equal to at least an aggregate of $3 million in the three years following the close of the deal.