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10/13/09 - The Microgaming-powered and eCOGRA-accredited tier one online gambling operations of Purple Lounge Limited have been acquired by Justin Drummond's London-based Media Corporation for GBP 465 000.
The consideration will be satisfied by way of an earn-out, payable over a period of up to 5 years, with payment calculated as 50 percent of the quarterly free cash flows generated by Purple Lounge, and can be satisfied by either cash or shares at the option of Media Corp. 


Purple Lounge operates the internet gambling site, which offers poker, card and casino games, along with sports betting. In the year to 31 May 2008, Purple Lounge made a pre-tax loss of GBP 476 670 on revenues of GBP 16 472 620. As at 31 May 2008, net assets were (GBP 685 000).
Purple Lounge operates its poker and casino activities from Malta, which is a white-listed jurisdiction. Following the acquisition, Media Corp will be able to market its gaming services to the United Kingdom, Drummond advised in a publi statement this week.
Drummond says that Media Corp expects Purple Lounge’s costs to be significantly reduced following the acquisition, which will assist Media Corp in monetising principal publishing assets such as and and allow Media Corp to mobilise its marketing expertise to grow the enlarged business.
Following completion of the acquisition, the chairman of Purple Lounge, Chris Gorman, OBE, has joined the Media Corp. board of directors as a non-executive director with immediate effect. Gorman (42) was a significant shareholder in Purple Lounge, and has received numerous business awards for entrepreneurialism. He will remain on the board of Purple Lounge on the understanding that his appointment may be terminated on one month's notice.
Commenting on the acquisition and the appointment of Gorman, Media Corp chief executive Justin Drummond said: “The acquisition of Purple Lounge will be a great addition to our growing list of impressive destination websites. In particular, it will bring a significant business to our leading website By combining our marketing expertise with Purple Lounge's operational online gaming experience we hope to create a very profitable business going forward.
“Another benefit for new and existing customers is that Purple Lounge’s premium players gain free membership to personal concierge and luxury life style group Quintessentially. This is a unique service that, to our knowledge, no other online gaming company offers.
“In addition, we are delighted to welcome Chris Gorman onto our Board as a Non-Executive Director. Chris was a significant shareholder and Director of Purple Lounge. He has a wealth of experience, particularly in the online sector. We are delighted to have someone of such calibre and talent join us on the Board.
“Chris has been a leading light in both retail and technology businesses over the past 10 years, and is one of the UK's most respected and knowledgeable business visionaries. His award winning track record includes the monumental rise of mobile phone retailer, DX Communications, which sold its 140 stores to BT Cellnet for £42 million in 1998; and Reality Group, an internet services company, sold in 2000 after just 14 months of trading to GUS for £35 million.
"Chris now actively invests and is involved in several businesses maximising his strategic visioning and business development expertise. Epitomising serial entrepreneurship, he is widely recognised for his sharp commercial focus and is in much demand for his advice and comment, supporting schools, universities and business forums on the subject of entrepreneurialism and motivation.”

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