Full Tilt Takeover Deal by Tapie Failed, PokerStars Rumoured to be New Buyer

1

Sources on the web indicate that the long awaited Full Tilt takeover deal by Groupe Bernard Tapie is dead following late stage negotiations.

GBT blames unresolvable differences with the DOJ as the source for the deal failing.

Here is the complete statement from Groupe Bernard Tapie below:

Groupe Bernard Tapie regrets to announce that, after seven months of intensive work, our efforts to obtain final approval of the United States Department of Justice of the agreement to acquire the assets of Full Tilt Poker have ended without success.

Ultimately, the deal failed due to two major issues.

The parties could not agree on a plan for repayment of ROW players.

GBT proposed a plan that would have resulted in immediate reinstatement of all ROW player balances, with a right to withdraw those funds over time, based on the size of the player balance and the extent of the player’s playing activity on the re-launched site. All players would have been permitted complete withdrawal of their balances, regardless of whether they played on the site, by a date certain, and 94.9% of ROW players would have been fully repaid on day 1. DOJ ultimately insisted on full repayment with right of withdrawal within 90 days for all players– a surprise demand made in the 11th hour, after months of good-faith negotiations by GBT.

The legal complications surrounding the deal – specifically, questions surrounding the legality of the forfeiture under non-US laws – also proved unresolvable.

All of the key assets of the FTP companies reside outside of the United States. A non-US court well might regard the purported forfeiture as a “fraudulent transaction” and declare it invalid or deem the acquirer of the assets responsible for all of those creditor obligations.

Given the $80 million purchase price, and the substantial amount of cash needed to relaunch FTP, those issues ultimately proved too substantial to overcome.

GBT is very conscious of the hopes it has created – among FTP employees that they will retain their jobs, among FTP players that they will recover their balances, and among the entire poker community that the world’s finest poker platform will be relaunched and bring a needed added element of competition to a world market that today is fully dominated by a single operator.

GBT cannot accept the end of those hopes.

For that reason, unless a concrete and legally viable solution is found in the very coming days to save the employees and repay the players of FTP, we will move to our own plan of action.

We understand from press reports that the DOJ may have entered into an agreement with PokerStars pursuant to which PokerStars will acquire the FTP assets.
If accurate, we can only assume that PokerStars determined that it was willing to accept these legal and financial risks in order to resolve its own legal situation with DOJ.

If a PokerStars acquisition of FTP means that all FTP players will be fully repaid immediately, we are very happy for the players, as their final and full repayment has always been our priority.

We only regret that such a deal would signal further consolidation of a poker market already dominated by a single player – an outcome that may raise antitrust concerns and that, in the long run, is probably not good for players and for the whole online poker industry.”

According to source iGamingFrance, “efforts to obtain final DoJ approval to acquire the assets of Full Tilt Poker have ended without success,” and that the deal was “sabbotaged”.

In a surprise move, PokerStars may have entered into an agreement with the DOJ pursuant to which PokerStars would acquire Full Tilt Poker’s assets and if accurate, PokerStars would likely pay the players who are owed funds immediately.

Alex Dreyfus, CEO of Chili Gaming, stated on twitter that PokerStars has paid $750m to acquire Full Tilt and settle its outstanding legal issues with the DOJ. A reported $330m of that price will go to repay Full Tilt account holders with the remainder believed to be in settlement of outstanding charges against PokerStars.  

PokerStars have yet to officially confirm the deal. According to the unconfirmed reports on 2+2 forums, PokerStars plans to bring Full Tilt Poker back online, and maintain separate sites.

1 COMMENT

  1. Money talks and bullshit walks.
    Congratulations to Scheinberg for succeeding to put the DOJ in their place.
    Good for him. Now my chances of being reunited with my lost FTP money have increased.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.