Doyle Brunson's bid for WPT...

[MakhtarUNC]

I just recently invested a good amount of money in WPT (World Poker Tour, WPTE). A few days after doing so, I check my E-Trade account to come to realize that WPTE is up 50%...I read the articles and I see that speculation says that Doyle Brunson offered 700 million to buy the company, that is reportedly only worth 350 mil...is this real? if so, when do you think is a good time to sell the stock?

[skoal2k4]

my guess would be shortly after the wsop ME... but try:

these guys (http://forumserver.twoplustwo.com/postlist.php?Cat=&Board=stocks)

[GrandmaStabone]

[ QUOTE ]
I just recently invested a good amount of money in WPT (World Poker Tour, WPTE). A few days after doing so, I check my E-Trade account to come to realize that WPTE is up 50%...I read the articles and I see that speculation says that Doyle Brunson offered 700 million to buy the company, that is reportedly only worth 350 mil...is this real? if so, when do you think is a good time to sell the stock?

[/ QUOTE ]


That is quite an offer. Ironically, DB was offered the chance by Lyle Berman personally to invest in the original project.

[newfant]

Just heard on CNBC that Doyle's bid may not be credible. Something fishy seems to be going on. Also, the auditors of Lake's Entertainment have resigned. Not good.

[AA suited]

yeah, offering 100% premium?! that's unheard of

[Sniper]

Updated info on Doyle's offer...

LOS ANGELES--(BUSINESS WIRE)--July 11, 2005--As previously reported, on July 7, 2005, WPT Enterprises, Inc. (WPTE) received an offer for the acquisition of WPTE. The offer failed to provide sufficient information for WPTE to determine its credibility. Consequently, and as described below, WPTE still does not have enough information to evaluate the credibility of the offer.

WPTE received the offer for the purchase of the company on July 7, 2005 from the Las Vegas-based law firm of Goodman and Chesnoff, purporting to represent a group of investors headed by Doyle Brunson. The term sheet proposed a purchase price of $700,000,000 but otherwise failed to provide sufficient information for WPTE's management and Board to determine its credibility. The term sheet indicated that the offer would expire on Tuesday, July 12, 2005 at 5:30 p.m. (with a provision for WPTE to request a one week extension). The offer was publicized by issuance of a press release that was released without consulting with WPTE.

WPTE contacted the Goodman and Chesnoff firm in an effort to substantiate the credibility of the offer but was not provided with any additional information. After market close on July 8, WPTE was ultimately informed that the Goodman and Chesnoff firm was no longer involved in the matter. WPTE made further attempts through the weekend to obtain more information but was unsuccessful.

Therefore, WPTE currently is unable to substantiate the credibility of the offer it received last week. If the offer cannot be substantiated and accepted by Tuesday at 5:30 p.m., the offer will lapse by its own terms.

"While WPTE is not actively pursuing offers, it will seriously consider the merits of this or any other offer once it receives the requisite foundation information," stated Steven Lipscomb, WPTE's President and CEO.

[newfant]

Looks like a pump-and-dump to me. I bet someone will get charged with insider trading over this thing.

[lastsamurai]

Yup! i agree.....the WPT stock has little earnings....watch out!

[Sniper]

Nice bluff Doyle...

"After the market close on Monday, July 11, 2005, WPTE contacted Doyle Brunson, the sole investor identified as a potential purchaser in the offer. Mr. Brunson suggested that WPTE should not expect any further contact regarding the offer. Assuming that no further contact is forthcoming, the offer will lapse by its own terms at 5:30 p.m. on Tuesday, July 12, 2005. "

[Wintermute]

No kidding. What the hell, Doyle? Don't tell me I have to lose respect for a living legend because he got me excited about my WPTE stock...

[DWarrior]

Is WPTE a good buy? Sounds like they're pretty much at or close to their peak, and are probably trading way beyond that.

I mean, seriously, how much more poker can we have on TV?

[DesertCat]

[ QUOTE ]
Is WPTE a good buy? Sounds like they're pretty much at or close to their peak, and are probably trading way beyond that.

I mean, seriously, how much more poker can we have on TV?

[/ QUOTE ]

I think the WPTE's financials should improve as they renegotiate TV contracts, it's my understanding that they signed "bargain basement" deals that are worth much more now (someone correct me if this isn't true anymore).

But my guess is they are still way over valued right now. They need to show much much higher earnings to justify this stock price.

[AA suited]

Update to Brunson's bid (http://money.cnn.com/2005/07/12/news/newsmakers/poker_tour.reut/index.htm)

[TN_POKER_MAN]

24/7 "The Poker Channel"

[thuja]

I agree with Newfant. This looks like a massive pump and dump scheme. WPT despite it's popularity, has not been able to generate tangible profits for its investors.

What better way for insiders to profit than coming up with a bogus takeover offer at a 100% premium to stock price?

Where there is smoke there is fire, and as an individual investor I would be extremely leery about putting money into this company.

What does it say about WPT's future financial prospects when the insiders would rather try and pump & dump to recoup their investment, than hold on to the shares because the company is a goldmine?

[BassMasterK]

It's not a good buy now. Much like the originator of this post, I bought into WPTE two weeks before this happened. I was taking a long position. As soon as it shot up, I got out because to me the offering of 100% over market value, a market value that many felt wasn't warrented (the stock was overvalued) was a big red flag for me. People were going crazy buying up the stock on news of this "offer". The speculation was that the offer was not so much for the value of the TV program and rights, but because WPT just opened their new online casino at www.wtponline.com (http://www.wtponline.com), and the strength of the WPT brand. What I don't think they realized is that since WPT is based in America, they can't take American bettors money, and currently Americans make up roughly 75 - 80% of all online bettors. This highly limits the customers base. Also they are late to the game as there are loads of poker sites already. But what they do have is name recognition and a show that is like free advertising for this online venture.

Long term, I think they have a shot of making it into something successful, but it won't be overnight and it will take some careful planning.

Regarding Doyle, over on the yahoo message boards for WPTE, people are calling for his head to roll. They want everything from the SEC to prosecute him, to him spending the rest of his life in jail (with some not very nice bunkmates), to him to get cancer, to ...well....some not very nice things. Lot's of people got greedy, didn't do their homework and now they feel scammed. I'm glad I got out when I did. When the dust settles, I may pop back in, but not until all the backlash from this move is over.