So party just made a hugely profitable move
 

.. by cutting off all the skins. 10k people on the skins, all getting rake back are about to get bored of playing against tough players move to party in which they can now 10 table, and lose their avg $1k/month-player.

Time to grab?

Re: So party just made a hugely profitable move
 

I was about to start a thread on the over/under before party is taken to court. Also, what's the line on whether first to trial (or settlement) is: stockholders for misrepresenting the companies worth at release or skins for breach of contract. (Not that either of these claims would be justfied, I have no idea of the particulars, but I would not be surprised to see either.)

Even if it is a great move, the price could easily dip due to its sudden and drastic nature, or it could jump for the same reason. Long term, it is hard to say how all this will play out. Big changes after making (two?) negative earnings anouncements certainly suggest some volatility in the price, but which way in the short term and long term, who knows.

The whole thing should be fun to watch.

Re: So party just made a hugely profitable move
 

[ QUOTE ]
I was about to start a thread on the over/under before party is taken to court. Also, what's the line on whether first to trial (or settlement) is: stockholders for misrepresenting the companies worth at release or skins for breach of contract. (Not that either of these claims would be justfied, I have no idea of the particulars, but I would not be surprised to see either.)

Even if it is a great move, the price could easily dip due to its sudden and drastic nature, or it could jump for the same reason. Long term, it is hard to say how all this will play out. Big changes after making (two?) negative earnings anouncements certainly suggest some volatility in the price, but which way in the short term and long term, who knows.

The whole thing should be fun to watch.

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i mentioned this in another thread. the chick who ran the sex phone lines was hassled by government and beat the charges or had the charges dropped.

i wouldnt be surprised if this thing gets ugly.

Re: So party just made a hugely profitable move
 

Can you guys post the link on this story?? Thanks, right now.

Re: So party just made a hugely profitable move
 

I agree, this is a positive development for Party and its shareholders!

For those who care... skins account for only 3% of Party Poker revenue.

Re: So party just made a hugely profitable move
 

Dan, I posted the press release in another thread

Re: So party just made a hugely profitable move
 

Snipe,

You mean this one here? :

Party Poker Press release 10/8


If not where is it? I see the cross-selling that makes sense but no mention of ditching the skins in this text.

Is this the post?

Re: So party just made a hugely profitable move
 

Yes thats it...

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If not where is it? I see the cross-selling that makes sense but no mention of ditching the skins in this text.

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They didn't "ditch" the skins... they moved all Party Poker players to the new system... and left all the skins players on the old system [img]/images/graemlins/wink.gif[/img]

Meaning if you play on Empire you will no longer be playing against Party players!

Re: So party just made a hugely profitable move
 

No they did not! What party just did was an equivalent of Saudi Arabia quitting OPEC because they don't like their quota. They're delusional if they think their business is protected. A bunch of sites have enough to volume to get into a full-blown marketing war with Party. They have no way of sustaining their margins on player one way or the other. All they're doing is speeding up the marketing war while what they should've done was to use the volume of the party network to squash the other competitors.

Re: So party just made a hugely profitable move
 

Weasel you are wrong... they needed to make this move to protect their business. Party currently has 40-50% market share. Only 3% of their revenue comes from skins.

Yesterday Empire could say come play with us instead of party and you can play against the same large number of players and get rakeback too.

Today, Empire is no better than the cryptos, prima or absolute with < 10K players online at a time.

Re: So party just made a hugely profitable move
 

BTW, the animals in the ZOO are going nuts over this!!!

Re: So party just made a hugely profitable move
 

[ QUOTE ]
No they did not! What party just did was an equivalent of Saudi Arabia quitting OPEC because they don't like their quota. They're delusional if they think their business is protected. A bunch of sites have enough to volume to get into a full-blown marketing war with Party. They have no way of sustaining their margins on player one way or the other. All they're doing is speeding up the marketing war while what they should've done was to use the volume of the party network to squash the other competitors.

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You don't understand that in 2 weeks they will be back to normal size.

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Today, Empire is no better than the cryptos, prima or absolute with < 10K players online at a time.

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Empire is a lot worse off. Empire probably has a ratio of 1 fish per 9 good players. No site will last this.

Re: So party just made a hugely profitable move
 

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Empire is a lot worse off. Empire probably has a ratio of 1 fish per 9 good players. No site will last this.

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I don't necessarily agree with this assessment. Empire did alot of advertising and sent alot of people CDs.

It will be interesting to see Empire's response to this change, which they likely were aware was coming, and have prepared for.

Re: So party just made a hugely profitable move
 

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Empire is a lot worse off. Empire probably has a ratio of 1 fish per 9 good players. No site will last this.

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I don't necessarily agree with this assessment. Empire did alot of advertising and sent alot of people CDs.

It will be interesting to see Empire's response to this change, which they likely were aware was coming, and have prepared for.

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90% of fish go bust within 6 months. empire also did a lot of spamming for affiliates.

Re: So party just made a hugely profitable move
 

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90% of fish go bust within 6 months. empire also did a lot of spamming for affiliates.

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Fish are not going away... just look at all the fish dumping their money to the house in non-poker games!

Re: So party just made a hugely profitable move
 

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90% of fish go bust within 6 months. empire also did a lot of spamming for affiliates.

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Fish are not going away... just look at all the fish dumping their money to the house in non-poker games!

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Bad analogy, if you're talking about B&M casinos.

I don't see any scantily clad free drink women, mesmerizing bright lights, or general drink and be merry hedonistic atmosphere in my bedroom.

Saying people will play losing online poker forever because Vegas has lasted this long is apples and oranges.

eastbay

Re: So party just made a hugely profitable move
 

Yeah, but I don't see the opportunity to be one click away from loads of granny porn in the B&M. Both places will have their fish markets.

Re: So party just made a hugely profitable move
 

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I don't see any scantily clad free drink women, mesmerizing bright lights, or general drink and be merry hedonistic atmosphere in my bedroom.

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Sounds like you need to find a more exciting girlfriend [img]/images/graemlins/wink.gif[/img]

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Saying people will play losing online poker forever because Vegas has lasted this long is apples and oranges.


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Poker has been around for a VERY long time!

Re: So party just made a hugely profitable move
 

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90% of fish go bust within 6 months. empire also did a lot of spamming for affiliates.

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Fish are not going away... just look at all the fish dumping their money to the house in non-poker games!

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... my first quote was from party pokers reports. i should have said 90% of new customers leave party after 6 months.

Re: So party just made a hugely profitable move
 

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... my first quote was from party pokers reports. i should have said 90% of new customers leave party after 6 months.

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This is what PartyGaming's latest financial report actually says...
Rates of attrition of new sign-ups in 2005 have continued to increase with 29.1% of the sign-ups in January 2005 remaining active in June 2005. Management believes that this trend has been driven by a combination of the continued strong growth in new sign-ups as well as an increase in the proportion of sign-ups which are more casual players, who play less often than our core players. Across all real money poker sign-ups to date, the average rate of attrition after six months is approximately 34.0% and after 12 months it is 31.2%.

Re: So party just made a hugely profitable move
 

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... my first quote was from party pokers reports. i should have said 90% of new customers leave party after 6 months.

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This is what PartyGaming's latest financial report actually says...
Rates of attrition of new sign-ups in 2005 have continued to increase with 29.1% of the sign-ups in January 2005 remaining active in June 2005. Management believes that this trend has been driven by a combination of the continued strong growth in new sign-ups as well as an increase in the proportion of sign-ups which are more casual players, who play less often than our core players. Across all real money poker sign-ups to date, the average rate of attrition after six months is approximately 34.0% and after 12 months it is 31.2%.

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I stand corrected!

Re: So party just made a hugely profitable move
 

So far today:

Party -9 to 71 (-11.25%)
Empire -43.22 to 138 (-23.85%)

Re: So party just made a hugely profitable move
 

Empire rallied massively this afternoon looking at Yahoo finance...

Re: So party just made a hugely profitable move
 

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Empire rallied massively this afternoon looking at Yahoo finance...

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The last trade data on Empire at yahoo is incorrectly reflecting a late reported trade.

Re: So party just made a hugely profitable move
 

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... They're delusional if they think their business is protected. A bunch of sites have enough to volume to get into a full-blown marketing war with Party. They have no way of sustaining their margins on player one way or the other. All they're doing is speeding up the marketing war while what they should've done was to use the volume of the party network to squash the other competitors.

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Can you say SPORTINGBET PLC?

- Huge, huge, huge financial power
- huge, huge marketing power
- allready have Nr. 3 Onlinepoker brand (Paradise)

Why the eff was SBT going down today? this is VERY positive for them if they react proper...

Re: So party just made a hugely profitable move
 

Buying on news is not a way to invest IMHO. If you like to speculate go ahead.

Re: So party just made a hugely profitable move
 

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Buying on news is not a way to invest IMHO. If you like to speculate go ahead.

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Not on some "meaningless" quarter results or short term news, but this could change the online poker industry when it comes to leaders...there's a LOT of volume to be picked off for a very cheap price now (even cheaper if compared to that silly EOL and PRTY valuations...)

Re: So party just made a hugely profitable move
 

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Buying on news is not a way to invest IMHO.

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yea, if you change the words 'news' to 'changes' and 'not a' to 'good', then i agree

Re: So party just made a hugely profitable move
 

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Buying on news is not a way to invest IMHO. If you like to speculate go ahead.

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People trade on news very profitably all the time!

Anyone who shorted Empire this morning is very happy! [img]/images/graemlins/smile.gif[/img]

Re: So party just made a hugely profitable move
 

Party may well be sued but it won't go anywhere. In the prospectus for Party and Empire they laid out a wide range of reasons why Party could end or modify the agreement with the skins. Basically, Party can do anything they want, there is no contract in place that ever protected the skins from this type of move. Which is why it was silly that Party and Empire were trading at similar valuations before this.