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Full Tilt Poker

Confirmed: PokerStars Acquires Full Tilt Poker (UPDATED)


Hey Ray, can you waste 7 months negotiating with a company that doesn't really have the money to buy us, and then let the DoJ circumvent us to sell our company to our biggest competitor who we hate? Thanks.

We’ve been working various sources to independently confirm Poker Fuse’s initial report of PokerStars acquiring Full Tilt Poker.

According to those aforementioned sources, the deal is in fact done. PokerStars is acquiring Full Tilt Poker. The $750M price tag (which includes player balances and DoJ fines) initially reported on 2+2 and Poker Fuse is also accurate.

We’ve been told by people connected to the Groupe Bernard Tapie investment group that the French company is “shocked” about the development. As we’ve noted before, GBT’s ability to pull off the ISPT will be greatly hampered, if not completely sunk, without a stable online poker platform.

More details to come as we receive them…

UPDATE: We’re hearing the final terms of the deal should be signed by all parties within a week. The $750M price tag may also increase. The DoJ has a lot of leverage here and may be flexing their muscles now.

 

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Groupe Bernard Tapie Out of Full Tilt Poker Acquisition–PokerStars New Buyer?


Got money stuck on Full Tilt? You might not for long as PokerStars has reportedly stepped in and acquired the company.

Tapie tapped out. PokerStars jumped in.

In a rapidly developing story, it appears as if PokerStars has acquired Full Tilt Poker.

According to reports and sources, PokerStars will cover both U.S. player balances and globals player balances, as well as pay a Department of Justice fine.

As part of the deal, the DoJ will not block or oppose PokerStars from coming back to the U.S. upon regulation.

As we reported on Insider, GBT had no desire (or financial capital) to cover U.S. player balances. This move appears to be a DoJ-led effort to ensure U.S. players are paid back, get as big of a fine paid as possible, and in return, potentially let Isai Scheinberg/PokerStars walk from charges (our speculation).

UPDATE: GBT confirms they are out. Read at PokerStrategy here.

PokerStars issues a non-committal statement here.

Developing…big Insider analysis coming Thursday.

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Full Tilt Poker Ready for Relaunch: What They Should Do


Sacrebleu! Now that we've almost relaunched Tilt, what should we do?!

With Full Tilt Poker gearing up for relaunch (read more about it on Insider here), let’s take a look at what Groupe Bernard Tapie should do to win consumer confidence and recapture market share.

1. “We’re the New Full Tilt, Here’s Our Mission” – It’s media blitz time. For New Tilt to have any chance at recapturing their market share and retaining its customers with stuck player balances, they need to come out blasting with a clear break from the past and concisely stated roadmap for the future.

This means apologizing for Tilt’s past (even though it wasn’t their doing), stating the problems that plagued the company will not be tolerated under the new regime, and expressing the willingness to do everything they can to win the public’s trust back.

A major component of that message is, “Your balances are safe with us.” At the end of the day, all past and future customers really want to know is whether or not a) they’re getting their money back and, b) that their money is safe moving forward. So New Tilt needs to map out the processes put in place–from covering all prior player balances to working with the AGCC in segregating funds–to accomplish this. This messaging needs to be at the forefront of any communication–among the first words the public sees from new management.

2. Publicly Fire Ray Bitar and Poach Top Executive Talent - We have no doubt that Bitar has provided GBT with some beneficial insight into the operations of running an online poker site into the ground. However, the man is indicted by the U.S. government and has zero credibility within the poker community. Bitar doesn’t need to be publicly humiliated by New Tilt, but a statement/press release like this would go a long way,

“As the acquisition of Full Tilt Poker is now complete, Groupe Bernard Tapie has decided to release Ray Bitar [and Gil Coronado and any other old regime executive] from their positions within the company. While Mr. Bitar has been instrumental in assisting GBT in completing the Full Tilt Poker acquisition, we believe it’s time for the company to go in a new direction with new management and ideas. We thank Mr. Bitar for his efforts and wish him the best.”

The follow-up to this is New Tilt needs to bring in seasoned, experienced C-level talent. While we’re all about figuring out ways to run start-up companies efficiently (it’s called the Anti-Epic Strategy), here’s one area where you’re going to have to spend a little more. Call it the Full Tilt Toxic Tax. There’s no way around it, New Tilt will have to “pay a premium” for top C-level talent based on the company’s past, but it’ll be money well spent.

Of course, some of that salary could be supplemented with a really attractive stock package (more on this later), which would pay off huge dividends if New Tilt ends up thriving.

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Daniel Negreanu Blasts Lederer, Bitar, Ferguson in Vlog


While this isn’t necessarily the first time Daniel Negreanu has bashed the actions of Full Tilt Poker–and specifically Ray Bitar, Howard Lederer, and Chris Ferguson–the above clip is the first time he’s done it in very clear language on a video blog.

Daniel really taps into the general public zeitgeist with this one. Along with calling Lederer (and the others) “a shameful little weasel” and “disgraceful,” he also says:

“I’d have no problem if…somebody came up to you and bash you in the nuts with a baseball bat.”

Damn. Watch the vid rant in full starting around the 6 minute mark.

In unrelated news, Negreanu also admits he’s STD free, so that’s good for him, although bad for the kayaking industry and means he may not ride a bike with or walk on a beach with a hot girl any time soon…

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Groupe Bernard Tapie Claims Pros Won’t Repay Tilt Debts


Zee bus? Oui oui I'll throw you under it.

In an exclusive interview with PokerStrategy.com, a lawyer for Groupe Bernard Tapie stated the company’s potential acquisition of Full Tilt Poker was in “serious jeopardy” in part due to unpaid debts from a number of high-profile pros.

As GBT lawyer Behn Dayanim explained to PokerStrategy:

GBT doesn’t want to acquire assets which will need to be litigated over later. In total, the sum owed to the company is between $10 and $20 million. 

Pros named as debtors include Phil Ivey, Erick Lindgren, Layne Flack, David Benyamine, Barry Greenstein, and Mike Matusow.

The only pros to respond so far–and the only one we anticipate to respond–was Barry Greenstein via this post on 2+2. In it, Greenstein admits to borrowing “$400,000 to play on Full Tilt a few years ago, before PokerStars had high stakes games.” He also published an excerpt of a letter he issued to GBT in which he states in some murky logic that:

The consensus in the poker community is that all money owed to Full Tilt or taken by investors after the company became insolvent should be used to pay back player’s funds. If I were to make a deal with you it would look like I had turned my back on the best interests of the American players.

All in all, the statement by GBT left us scratching our heads. There was nothing positive that could possibly come from it. Yes, if pros owe the company money, it should be repaid. But publicly outing the debtors–and having the (de) gall to claim that non-payment puts the acquisition in jeopardy, is highly irresponsible at best or (more likely) a flat-out lie at worst.

For specific reasons as to why we believe GBT made this announcement, plus our analysis of what the GBT statement could really mean, go to Wicked Chops Insider here.

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