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Originally Posted by FDSaussure
The fact that PS brand is golden doesn't change the fact that the FTP brand still has supplementary value, especially if the US market opens up again.
The FTP brand has far more value to an entity that does not already operate a poker site, however. Any FTP brand value to PS is really only incremental, and yet, PS trying to unlock that incremental value would be counterbalanced by factors such as, the fact that PS does not have 27% rakeback, and isn't going to want to deal with the splashback of trying to operate FTP without its previous generous rakeback. (And, get real, there is even less a chance that PS actually operates FTP with 27% rakeback.)
The real value to PS in owning FTP, aside from the DOJ-settlement issues, which probably outweigh any actual tangible benefit of FTP itself, lie in the intellectual property, and in the prevention of anyone else being able to attempt to rebuild and exploit the FTP brand.
The licenses are worthless because there aren't any. The market share is worthless, because FTP has exactly 0% market share in the last year. While the reputation of "FTP steals funds from its players" can certainly be overcome, that would cost PS a lot of money in terms of promotions and benefits to overcome, whereas no one has ever accused PS of stealing from players accounts, and thus, there is no need to rebuild the most basic reputation of that brand.
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Originally Posted by FDSaussure
Consumers aren't rational, especially in the gambling market
Truer words never spoken. Is Russ Hamilton were put back in charge of UB/AP today, and it opened up in the US, every degen on these shores would deposit and play Russ HSNL.
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Originally Posted by FDSaussure
, and so having two powerful brands mgiht end up being a very good idea..
It could. Having THE most powerful brand, and eliminating the potential 2nd or 3rd most powerful brand, might end up being a far better idea.
Look, I'm not trying to suggest that anyone at PS has actually made that decision. We all know a deal hasn't even been closed, the matter is not settled, etc., etc. But there are an awful lot of sound business reasons why not bringing the FTP site and brand back online, and really, very few why bringing it back makes solid business sense to PS.
With any other buyer, that equation becomes very different, indeed.