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Possibility Of PartyGaming Expanding With Gigamedia

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PartyGaming has agreed to pay an amount of $105 million to the US Department of Justice less than a month ago. In terms of the settlement PartyGaming would not be prosecuted for having violated the online gambling laws.

Since having settled with the US, PartyGaming is looking to expand into new avenues. It is rumored that PartyGaming is amongst other companies who are in the process of negotiating to acquire Gigamedia. Gigamedia has hired Goldman Sachs to endeavor to sell their Everest Poker brand, if not their entire company, but it does not seem as though Gigamedia shareholders would be happy to see the company merge with rival PartyGaming.

“We have made it very clear that we believe the industry will consolidate and we will look at opportunities as and when they arise”, said a spokesman for PartyGaming. He declined, however, to discuss the possibility of taking over Gigamedia directly.

PartyGaming will not decide on which companies they should take an interest in purchasing until they find funding to allow them to do so, which is their main priority at the moment.

The London Stock Exchange saw PartyGaming receive an increase in price because of their settlement with the US when they closed on Friday.

PartyGaming owns one of the largest online poker room - Party Poker