In Super/System 2, the new 650-plus-page poker bible published earlier this year, poker legend Doyle Brunson spent an entire paragraph lamenting his missed opportunity to buy into WPT Enterprises
That's a hefty offer. It was double WPT's price of $17.75 per share at Thursday's close. And the news boosted WPT shares by 56% in Friday afternoon trading. Lakes Entertainment
The bid comes as the championship "No Limit Hold 'Em" event of the Harrah's Entertainment
PartyGaming, which had its initial public offering last month, owns Party Poker, by far the No. 1 online poker site. But even though WPT Online will not accept wagers from U.S. players, WPT's powerful brand, and the increasingly considerable reach that its TV show is generating, should give the upstart a long-run advantage over the poker sites of other second-best players, including that of Motley Fool Hidden Gems selection Cryptologic
But despite WPT's reasonable profitability for a bright future, Brunson would be paying out a lot of money for a company with no previous profit record. On the other hand, that's certainly not out of character for Brunson, who has become a legend by being bold and aggressive. And he knows what he is getting: He has included a 20-page section of Super/System 2 devoted to WPT.
For WPT shareholders, I think the offer is worth consideration, since it offers healthy short-term compensation and eliminates the risk of business failure.
For more from Jeff Hwang on WPT, poker, and investing, check out:
- WPT Enterprises Worth a Bet?
- WPT's Promising Poker Hand
- From Poker to Investing: 10 Tips From the MCU
- From Poker to Investing: Always Look Ahead
- From Poker to Investing: Don't Chase Losers