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The FTSE-100 gambling group that owns Ladbrokes, Entain, has begun to prepare a sale of PartyPoker, in an effort to stall activist investors.
Entain has hired bankers to prepare a sale of PartyPoker as part of its attempts to revive its core operations, reports Sky News on March 12. Advisers from Oakvale Capital are reportedly working on the prospective sale of the online poker business, according to company insiders. The deal is expected to go for roughly £150 million ($192 million).
That’s quite the drop from the £5 billion valuation that PartyPoker’s then-parent company PartyGaming got when it first floated in London in 2005. However, the last 19 years have seen the online poker service lose a huge swathe of its customers.
PartyPoker is considered non-core to Entain’s business, as it also owns British-based Ladbrokes, Coral, and a stake in major US betting company BetMGM, which recently made a push into the UK market. The planned sale comes after Entain has endured pressure and criticism from activist investors that have built up strong positions on its share register.
The company parted ways with former CEO Jette Nygaard-Andersen last year and is now headed up by interim chief executive Stella David. Shares in Entain were trading at around 758p on Friday morning, down from 739p on Tuesday morning.
What are activist investors?
Activist investors refer to those engaging in a form of activism where shareholders use equity stakes in a corporation to put pressure on its management. In the case of Entain, these investors are using the methods to express their concern about Entain’s poor performance in its core markets, particularly as regulators have recently tightened regulation on the online gambling industry.
These investors have also voiced grievances with management’s costly deals, which could account for why the sale of PartyPoker is now on the table. No official reason has yet been stated as to why Entain is considering and reportedly preparing for the sale of the online poker company.
Featured image: Entain
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Embracer Group, a Swedish video game holding company, has sold Saber Interactive for $247 million, less than half of their planned sale. Early in March, it was leaked that Embracer planned to sell off Saber for $500 million.
Embracer’s initial acquisition of Saber in 2020 cost them $525 million.
Selected assets have been divested from Saber to Beacon Interactive. Beacon is a new company founded by one of Saber’s cofounders, Matthew Karch.
This move results in Embracer ceasing all operations in Russia, in line with a decision made by the Embracer board previously.
The company’s CEO, Lars Wingefors, made a statement on the sale. “I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us. This transaction puts both companies in a stronger position to thrive going forward. Embracer is now able to discontinue all operations in Russia, according to a previous board decision, while safeguarding many developer jobs under new independent ownership.
Ongoing restructuring
“This is the first transaction of the previously mentioned structured processes and marks a small but important step in our journey to transform Embracer into the future for the benefit of all employees, gamers, and shareholders,” finished Wingefors. Embracer previously announced an ongoing restructuring effort aimed at reducing its debt. 
Matthew Karch also spoke about the transaction. “This divestment leaves both parties in much better positions to grow our respective businesses. I will continue to remain a large, long-term shareholder of Embracer and we will remain partners on several ongoing and future projects. This transaction also safeguards the livelihoods of hundreds of professionals, many of whom I have worked with for over two decades.”
Beacon will retain several studios that were part of Saber, including Fractured Byte, creators of Brothers: A Tale of Two Sons, Biomutant, and classic skateboard games Tony Hawk’s Pro Skater 1 & 2.
The Swedish company retains control of multiple studios as well as several titles already in development. 4a Games, creators of Metro Exodus, are amongst the studios staying with Embracer.
Featured image credit: Fractured Byte
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