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MEDIA CORP AND HIPPODROME TIE UP IN ONLINE JV
1/27/2012 : Shares placed to cover start up costs
UK gaming and advertising group Media Corp has entered into a joint online venture agreement with the soon-to-be launched Hippodrome Casino.
Under the terms of the deal Media Corp will provide a branded online offering comprising a suite of online gaming products that include online casino and poker games. Sportsbetting and bingo are scheduled to be added through the year.
The joint online venture which is contracted on a revenue sharing basis will see MediaCorp maintain the software, all financial transactions and 24/7 customer support. Additionally, Hippodrome Casino customers will be offered cash deposit and withdrawal facilities from their online accounts at the Casino venue.
Hippodrome Casino has undertaken to promote the online offering across a wide range of media including television, outdoor and printed media. Cross-promotional opportunities between the online and terrestrial venues is included in its strategy.
In relation to the deal, Media Corp has announced the placing of 32 400 000 ordinary shares at 1.1p each, the proceeds of which will be used to fund the initial set up cost of the online joint venture.
The soon-to-be launched Hippodrome Casino is a GBP 40 million redevelopment of a historic venue that will create a 90 000 square-foot international-style casino in the heart of London's West End comprising three gaming floors, five bars, a restaurant and a 200 seat cabaret theatre. The casino predicts 1 million visitors in its first year of operation.
Justin Drummond, chief executive officer, Media Corporation plc, commented: "This is a major deal for Media Corp, which will see the scale of Media Corp's online gaming business grow enormously. Whilst we already have a sizeable business in online poker, growth of our online casino business has been a particular focus for the Group. The deal will major step change for Media Corp as we build a significant presence in the UK and international online gaming market. The Board is also delighted that the placing to the maximum amount of the share authority was oversubscribed, demonstrating the belief that investors have in our continued growth."
Simon Thomas, Chairman, Hippodrome Casino added: "We are very excited about working with Media Corporation. We are creating something special with the Hippodrome that should start a new era in gambling led entertainment in the UK. We needed an online partner that was doing something special with online casinos, who reflected our standards and desire to do the basics superbly, but add a layer of fun and flair and we are proud to have Media Corporation as our online partner. Together we should be able to create something larger than the sum of the parts and give a new dimension to both businesses."
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