NEWS: Pacific Poker parent to go public next week

[Uglyowl]

Online casino firm Cassava plans IPO - report
Wed Aug 24, 2005 1:58 AM BST

LONDON (Reuters) - Internet casino operator Cassava Enterprises aims to launch an initial public offering in London next week, the Financial Times reported on Wednesday.

The IPO is expected to value the group at more than 700 million pounds, the newspaper reported, citing people close to the plans.

Gibraltar-based Cassava, which runs gaming Web sites including 888.com, Pacific Poker and Reef Club Casino, is working towards a September 1 launch date for the IPO.

No one at Cassava could be reached for comment.

The FT said an IPO would generate a big windfall for the two Israeli families that control 90 per cent of the company. Avi and Aharon Shaked own about 70 per cent while the Ben-Yitzhak family owns about 20 per cent, the paper said. The company has 20 million registered member accounts in more than 150 countries and markets itself as the world's largest Internet casino operator by visitor numbers. The FT report said British bank HSBC (HSBA.L: Quote, Profile, Research) (0005.HK: Quote, Profile, Research) is sole bookrunner on the

IPO.

Cassava would be the latest online gaming company to list in London in recent months as online poker and other Internet games surge in popularity.

PartyGaming (PRTY.L: Quote, Profile, Research), the world leader with more than half the online gaming market, went public in June at a value of about 4.6 billion pounds.

A report in Britain's Sunday Express newspaper this week said Cassava was mulling a bid for its rival PokerStars. Cassava could not be reached for comment on that report.

[MicroBob]

Here's a follow-up with a bit more on rumor of 888 potentially trying to buy pokerstars.

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LONDON (Reuters) - Online gaming firm Cassava Enterprises, the owner of the 888.com poker Web site, is preparing for a speedy flotation in order to fund a large takeover, the Sunday Express reported.

Cassava is believed to be mulling a bid for its rival PokerStars, the world's second largest Internet poker firm, the newspaper said, citing unidentified City sources.

They added that Cassava's lead banker, HSBC (HSBA.L: Quote, Profile, Research)(0005.HK: Quote, Profile, Research), was planning to list the company on the London Stock Exchange (LSE.L: Quote, Profile, Research) in an 850-million-pound flotation this autumn, the Express said.

Cassava may join several other online gaming companies to list in London in recent months as online poker and other Internet games surge in popularity.

PartyGaming (PRTY.L: Quote, Profile, Research), the world leader with more than half the online gaming market, went public in June at a value of about 4.6 billion pounds.

Once listed, the company would then probably try to take over PokerStars, the newspaper quoted the sources as saying.

"It would not surprise me at all if 888 was looking to buy PokerStars," the paper quoted one banker familiar with the situation as saying. "There is bound to be a lot of consolidation in the sector.

Cassava, which was unavailable to comment, was founded by Israeli brothers Avi and Aaron Shaked, and Shai and Ron Ben Yitzhak and is based in Gibraltar.

[x2ski]

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Here's a follow-up with a bit more on rumor of 888 potentially trying to buy pokerstars.

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LONDON (Reuters) - ...

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Would this or would this not, suck.

[Overdrive]

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Would this or would this not, suck.

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It would be major league suckage if this happened. Major.

[Oblomov]

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Would this or would this not, suck.

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It would be major league suckage if this happened. Major.

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Why though? I doubt they would introduce any major changes over at Poker Stars. Seems like Stars and Pacific attract completely different sorts of players. It would be in Cassava's interest to keep it that way.

[Wyers]

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Would this or would this not, suck.

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It would be major league suckage if this happened. Major.

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Why though? I doubt they would introduce any major changes over at Poker Stars. Seems like Stars and Pacific attract completely different sorts of players. It would be in Cassava's interest to keep it that way.

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All of their customer support would likely fall under the same umbrella. Pacific provides lousy support while Stars' is fantastic. Whose model would they adopt? As Stars is the company being acquired, they would likely integrate them into their existing model.

Pacific, once the cream of the crop in regards to their software, has not implemented any significant upgrades and their poker room has been left in the dust. Will they commit to maintaining Stars and keep the site technologically relevant?

While it is unlikely that this would occur, it would be unfortunate to see Stars go the way of Pacific.

[TemetNosce]

Any chance it could bring Pacific's software into the 21st century and have it come up to Stars software quality? If they did, could you imagine being able to multi-table Pacific? That would make more than a few mouths water around here. [img]/images/graemlins/smile.gif[/img]

[ipp147]

[ QUOTE ]
Here's a follow-up with a bit more on rumor of 888 potentially trying to buy pokerstars.

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Once listed, the company would then probably try to take over PokerStars, the newspaper quoted the sources as saying.

"It would not surprise me at all if 888 was looking to buy PokerStars," the paper quoted one banker familiar with the situation as saying. "There is bound to be a lot of consolidation in the sector.

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Banker speak for,

This is a hot sector.
We are going to persuade them to try and take over another site.
We should make good fees from this.

[toss]

One of the reasons (maybe the only) Pacific's games are so juicy is because you can only one table.

[TemetNosce]

Good point.

I'm now awake from my dream...