Party Poker the Evil Empire?

Cubswin · #1 12-10-2004, 10:34 PM

Party Poker plans massive spending spree link

Party Poker, the world’s largest online poker site, has hinted at plans to launch a major acquisition drive in 2005.

The poker site’s parent company iGlobalMedia has repeatedly denied rumours it is pursuing an IPO on the London Stock Exchange.

But Vikrant Bhargava, marketing director at iGlobalMedia, suggested the firm is looking to raise funding for new acquisitions in an interview with eGaming Review.

Party Poker has had a hugely successful 2004 with annual profits expected to reach US$500m, but Bhargava said the firm is not satisfied with its market share.

“We have 60% of the industry, but we could be 95% of the industry,” Bhargava said.

“With an influx of capital you can go out and acquire everyone else.

“It could be in this industry, or it could be people in other related businesses, but I see that as definitely a possibility,” he added.

Bhargava also said Party Poker will be looking at stepping up its presence on Television throughout Europe, after trialling TV shows in the region.

“We have been sponsoring a few TV shows, and if it does well we will take it up from one to 10; and if 10 works well we will take it up to 100,” he said.

The full interview can be read in the next issue of eGaming Review, which will be published early next week.
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I figured that expansion of market share would be a top priority for Party but I would never have thought they would be so public about it. You would think they would get their customer service sorted out before shooting for a monopoly.... but i guess not. I smell $4 rakes coming....

cubs

Cubswin · #2 12-10-2004, 10:39 PM

We have 60% of the industry...

I love fuzzy math

gabyyyyy · #3 12-10-2004, 10:41 PM

[ QUOTE ]
“We have 60% of the industry, but we could be 95% of the industry,” Bhargava said.

[/ QUOTE ]

LMFAO. He must work in the promotions/bonus department.

DesertCat · #4 12-10-2004, 10:45 PM

This doesn't make much sense. This guy just painted a bullseye on his company for the EU trade commissioner. And why would acquiring competitors be a good use of capital? If you really own 65% or more of the market, wouldn't you be focused on using marketing and pricing to take market share, and only resort to acquisition if the price was cheap? The only exception I can think of is if the competitor has a technology they need.

Being the dominant poker site that is minting cash daily, why even go public and have all those hassles? If it's to buy competitors, you have cash for that, why dilute your ownership with an IPO? Of course the most common real reason companies go public is, "we're worried about the future and want to sell out to suckers while the market is hot". But I can't see why in this case PartyPoker would be worried.

gabyyyyy · #5 12-10-2004, 10:47 PM

[ QUOTE ]
This doesn't make much sense. This guy just painted a bullseye on his company for the EU trade commissioner.

[/ QUOTE ]

Ya, no $hit

I am pretty sure monopolizing an industry is illegal in Europe as well.

AngryCola · #6 12-10-2004, 10:50 PM

[ QUOTE ]
I am pretty sure monopolizing an industry is illegal in Europe as well.

[/ QUOTE ]

It's far more illegal in Europe than it is in the US.

*HINT* I'm just agreeing with you. [img]/images/graemlins/smirk.gif[/img]

Cubswin · #7 12-10-2004, 10:51 PM

[Donald Trump voice] Vikrant Bhargava... your fired [/Donald Trump voice]

Beavis68 · #8 12-10-2004, 11:01 PM

[ QUOTE ]
[ QUOTE ]
I am pretty sure monopolizing an industry is illegal in Europe as well.

[/ QUOTE ]

It's far more illegal in Europe than it is in the US.

*HINT* I'm just agreeing with you. [img]/images/graemlins/smirk.gif[/img]

[/ QUOTE ]

Are any of these companies licensed in Europe?

realwtf · #9 12-10-2004, 11:09 PM

I do not see how advertizing to get a bigger market share is bad. Do not see how they are acting like a monopoly either.

Cubswin · #10 12-10-2004, 11:18 PM

I do not see how advertizing to get a bigger market share is bad.

It is not bad if you are a publicly held company or plan to go public. Maybe this is why they have announced this game plan? [img]/images/graemlins/confused.gif[/img] If your not going public why the heck would you announce your expansion and acquisition plans in this manner? It really doesnt make sense to me. Im not a big finance guy so maybe someone could enlighten us.

Do not see how they are acting like a monopoly either.

You do see how acquisition could lead to a monopoly cant you? Im not saying they are one at the present time but if their market share continues to creep up it could become an issue.

cubs