Originally Posted by gradx
Leda, if that's the case then they also pickup the full tab for the 1B civil suit which makes the deal implausible.
Not necessarily - DOJ gets a win - the indicted owners of FTP lose their entire stake in the company and get nothing in return - US players get paid. DOJ keeps seized funds - criminals are not rewarded. You still need to resolve the class actions and the company would need to agree to cooperate with any further investigations. The class actions would be weakened by payment of FTP. So much that would still need to be settled.
As other have pointed out - it looked like FTP couldn't also fund the Euro players - and if that is true, then really these guys are putting up to ~$300M into FTP - that seems like a ton of money to me for this business - especially if half that money then hits the withdrawal button on day one (and you can but a bunch of it will - surveys in Germany say half of player will pull the trigger). So it seems pricey to me though, so I feel like its what they 'hope' to get done, rather than whats been agreed....but this is a plausible way out for the FTP people if they have found someone willing to put up this much cash AND they have gotten both the Class Action people, DOJ and the AGCC (new entity would agree to make sure the FTP gaming companies were probably funded) to work together to make it happen. I'm skeptical - but this is one of the few ways I could have seen this work - but is FTP worth $300M in its current state? Well - all they needed to do was convince someone it was I guess - and from these boards we can see that would have been possible, whether true or not!
And, if they merge the FTP business into another poker or gaming company that hasn't been involved in the US, this entity would most likely be able to participate in US online gaming when it happens. But such a deal would have to mean a merger and probably a rebranding - very gutsy if that is the plan - tons of risk for the amount of money involved.
Ask yourself this - if say a Bingo business went to its investors and said, we want to acquire FTP's assets (which we will re-brand) and merge them into our business and it will cost us $300M for $150M in players (some of which may leave) - can you give us the money - would anyone do that? Say half leave - so they put up $300M for $75M in player assets (and lots of goodwill) - I guess thats like buying a poker site for 4 X Balances - that seems high. But I dont know the math on return on player assets either.
So if these guys get bought out this way - will everyone forgive Howard, Chris and Bitar?
We shall see soon enough.