British interactive gaming firm NetPlay TV has announced a deal with Virgin Media Television to run its Two Way Gaming Limited television games subsidiary initially until July of 2013.
Two Way Gaming includes the Challenge Jackpot website and television channel, which broadcasts on Sky and Virgin Media around-the-clock while also featuring with live presenters for three hours a day on Bravo 2 and Virgin1.
The deal will see NetPlay TV pay $2.95 million to Virgin in the form of new stock, equating to 9.9 percent of firm, before taking over production of the Challenge Jackpot products. Virgin stated that the deal would allow it to build the brand, which includes live television roulette alongside web games, and integrate its Internet, television and mobile gaming elements.
According to news portal Mad.co.uk, the agreement comes a month after reports emerged that Virgin Media was on the verge of selling its television division, which is an equal partner with BBC Worldwide for the UKTV portfolio of ten channels.
Challenge Jackpot has 16,000 registered players and generated $21.2 million in bets last month with a gross margin of around $732,000.
NetPlay TV stated that the addition of revenues from Two Way Gaming would take its own gross monthly bets to over $66.28 million while announcing that it expected its earnings before interest, tax, depreciation and amortisation for 2008 to be in line with market estimates. It also revealed that it would be raising $1.1 million through a private placement of 4.44 million shares at 26 cents each.
Abstract from www.igamingbusiness.com
