Entain Reportedly Eyes Potential Sale of PartyPoker

In an effort to counter activist investors and keep its focus on core operations, the owner of Ladbrokes, Entain, is reportedly exploring options for selling PartyPoker. Last year, industry analysts suggested Entain may consider selling its stake in MGM, media reports confirmed at the time. Another option Entain may explore, as suggested by expert analysts, was a potential sale of other assets or even a merger.

The suggestions came at a time when Jette Nygaard-Andersen, Entain’s CEO, announced her departure in an unexpected move. After Nygaard-Andersen parted ways with the company, Stella David was appointed to the role of interim CEO.

Now, as announced by Sky News, Entain is eyeing a possible sale of its PartyPoker as it seeks to shift its focus to core operations and address activist investors. Citing unnamed sources, the publication suggested that the company is currently collaborating with representatives of Oakvale Capital for the potential divestment of its online poker business.

Over the last few years, PartyPoker has seen its customer base decrease gradually. Currently, the business doesn’t represent part of Entain’s core operations. Still, nearly two decades ago, PartyPoker’s parent company, PartyGaming, was evaluated at £5 billion ($6.4 billion). In contrast, the recent report suggests that Entain anticipates an estimated £150 million ($191.5 million) from the potential sale of PartyPoker.

Sales of Assets and M&A Are Not Uncommon for the Industry

Mergers and acquisitions, as well as divestment of assets, are not uncommon for the gambling sector. In some cases, companies offload businesses that are not generating as much revenue as anticipated while in other cases they sell assets in an effort to streamline their offering and focus on strategic priorities. It is likely that if Entain sells PartyGaming, the move would be primarily dictated by an effort of the company to focus on core business operations.

Earlier this year, Entain announced its withdrawal from more than 140 unregulated gambling markets. At the time, the global betting and gaming operator said that the process complements an objective that started in November 2020. Internally, Entain labeled this objective as “Project Sunshine” and it saw the company withdraw from many jurisdictions, including Antarctica, Vatican City and other markets and territories with less than 1,000 people.