This one hit the markets running today. Despite negative publicity it was well supported so I jumped in for a small holding--anyone else joining in?? I am hoping for a good run up before the shorters get going.

Which company are you looking at Hangon? I can't see that PRTY ever made it to 2, let alone 4.

forget party..poker is just a fad,get into sportingbet,..always be around

then again 20% rise tomoro..

The Sunday Times October 29, 2006


Gaming sites in 1.6bn merger talks
Louise Armitstead and Matthew Goodman



TWO of the biggest UK-listed online poker operators, Party Gaming and 888 Holdings, have held preliminary talks about a possible merger to create a 1.6 billion company.
Both firms have been trying to find a way to cope after sales were hit by the introduction of laws banning online gambling in America.



Party Gaming, the worlds biggest online poker group, fell out of the elite FTSE 100 group of companies, while 888 Holdings dropped out of the FTSE 250 index. Their shares collapsed when both firms said they would cease trading in America.

Executives from the two companies have in the past couple of weeks held exploratory talks to combine their pool of online players. It is expected that further talks will be held in the coming weeks. It is one of several options being considered by both companies and their rivals.

One insider said: All the players have been talking to each other for weeks. At one stage there were plans for attempting a multi-company merger but it was decided that this would be too difficult and that one merger at a time would be quicker.

He added: The biggest problem facing gaming companies is that each ones pool of players has been dramatically reduced by the removal of the American market. Now when players sign on, there are a lot fewer people to play against, which means even those that are legally allowed to play are finding it less interesting.

Other firms also trying to find ways to consolidate include Sportingbet, the AIM-quoted company whose former chairman, Peter Dicks, was arrested in America last month, Excapsa, which is also listed on AIM, and Bwin, an Austrian internet betting firm.

The big gaming companies are looking to acquire rivals that have a strong European or Asian presence. For example, Party Gaming has been linked with a deal to buy Gamesys, which is big on the Continent, and Victor Chandler, the bookmaker that has the biggest player base in Asia.

Ten days ago when Party Gaming released its key performance indicators for the third quarter, Mitch Garber chief executive, told analysts the company was in talks with several parties. Two weeks ago, Garber told The Sunday Times: Consolidation is, in my view, the most sensible way to grow the business right now.

Party Gaming was floated on the London Stock Exchange last year despite its prospectus containing 33 pages warning of risks such as a block on money transmission. The firm earned 85% of its revenues from US clients using its internet services.

In the past month Party Gamings shares have slumped 70% to 30p. Over the same period 888 fell 24% and closed on Friday at 108p.

maestro headline in the business column in sunday times online that party gaming and 888 gaming sites are in preliminary talks re a 1.9 billion pound possible merger. Todays times on line have a look and see what you think. Looks like your party gaming shares will shoot up tomorrow every one will be buying hoping that this will go ahead.

Frampton, you are right....must be mad, me! I have EDITed the earlier posting as it affected both fall% and Yield.

At the time I was unaware of two pieces of News:
1) That PRTY and ANOther might merge to boost their "play-value", others here think this might help the sp....(Sun Times discusses this and here, too)
2) UK Government to have Euro-Plus talks aimed at countering the US "heavy-hand" - folk will be aware that Prohibition in 1920 created the financial muscle for organised crime (esp US_based) which we have to this day. Legit outlets for gambling bring in plenty of revenue to the Exchequer and some regulation can reduce its worst effects.
Thanks also to Maestro for yr comments.
I have to take this on the chin, but the two above events.... look like I have a slightly greater chance of winning (for once!).

So, the choices are: buy in short term & hope for a bounce on rumour.
Buy in for the long term & expect PRTY shares to be re-issued as .........? (which in itself is going to be interesting as, if PRTY & 888 get together, how will they value each other's shares?)
Or don't buy at all, I hear someone say!

Is it the case that EK lost heavily? Shame.

He shorted PRTY and NLR but lost out on SBT.

I am puzzled ..... if all the open and admitted talk of a merger between PRTY and 888, why have neither SPs moved?

888 has gone up 10% since the news.
Also, if these two are now in bed together, who is knocking at 365/UKB's door?

wish someone damn well would!!

The gaming shares are not moving today because the government is today having a debate on online gambling restriction...looks like more laws coming into UK as well...these shares may go down further

Have made a couple of comments on the GOO thread about PRTY ...... in very brief, after consideration i still think this share should be avoided ..... company cannot possibly justify a cap of 1.2 billion when all 80/90% of its biz came from US and its gaming site is now apparently deserted.

market seems to know best!

I can't believe that you even considered it! Maybe SBT as a short term punt. It's reasonably easy to make +/-10% with SBT, but if the PRTY / 888 venture doesn't matierialise, what then.........? Scary thought. IMO watch only.

almost got greedy! ..... almost fatal error of assuming that just because price has bombed, it must be cheap

IMO, the PRTY founders and staff were OTT greedy during the initial float. The
limited free-float may have helped to push up prices and PRTY into the FTSE100 but they are now a liability to the SP. I don't think the ordinary shareholders will receive much, if any, of the cash that PRTY still holds.

There are probably money to be made if one play it righ or have access to reliable insider information but too risky for me for now.

All IMHO, DYOR, NAG etc

Having bought at 30p I'm biased, but spread is still tight....I agree there is uncertainty over any Merger - but wonder if that isn't doing "something" rather than nothing? For, it doesn't increase the number of players, just moves them about and in all probability some are registered on both Sites.
/
About the UK Government:
The Politic Show on BBC2, ran with the Ascot-story and comments on the US heavy-hand were rife, indeed it has more to do with US-Election than saving Americans from their addictions ....and I read that PRTY has plans to offer so-called Free gambling on things that aren't covered by the new (US)Laws.

In the UK, the Government sees the US-law issue as dictating internal policy and we know UK Gov is keen to have "SuperCasinos" ( but Why? - to add to the UK TAX-take!)....so arranging some framework that is acceptable to Europeans and Asia "might" ward-off any further encroachment of UK Sovergnity

However, comments (here) about PRTY Bosses and the Lauch Money are worrying - perhaps these Execs need to be removed from Office....(US - help!)...to be replaced by a reigeme where Players' Losses don't ruin their fun.
This is a business that is a "route to loot" - there is nothing to manufacture and distribution is "almost free" .....so DO NOT BE Greedy, should be their cornerstone/Motto.........as to the SP......Dunno - maybe it was overvalued - maybe it's oversold......OR, NOT?..... PRTY recovered from a recent Low - so 29/30 is already higher+steady than it was......

I'm Holding ....for some more news.
Have they had an AGM...did anyone go, ...what was the mood?

hangon,

Outlook may be less gloomy if Democrat controls both houses and perhaps even a Democrat president.

My opinions on PRTY are just that, opinions.

I avoided the float and investment because I sensed excessive naked greed. TOO much was being taken off the table. Ordinary punters usually carry the risk and provided riches to a few.

Very cautious. Still waiting for sub-20p before making a decision. Not fussed if I miss out. With low overhead and running costs, PRTY should always be profitable, as long as you can trust the integrity of the executives and staff not to line the pockets of themselves, their relatives and associates first.

Again, all IMHO, NAG, DYOR ...

take over on cards,

who says and even if so, at what price? ...... cannot see any way that PRTY merits even its current market cap of 1.2 billion - can you?