Business owner and head executive proposes acquiring complete control
Gaming tycoon, Laurence Escalente, the mastermind behind Virtual Gaming Worlds (VGW), is stepping up his game by aiming to clinch full control of the social gaming and sweepstakes operator. Here are the juicy details:
Takeover MissionEscalante owns a whopping 70% of VGW through his family office, Lance East Office. Now, he's throwing his hat into the ring to seize the remaining 30% of shares, setting the company's worth at a staggering AUD 3.2 billion ($2 billion)[1][3].
The Deal BreakdownEscalante's taken a bold move, spelling out his offer to minor investors in the form of AUD 5.05 per share.[1][5] This translates to a hefty AUD 950 million ($617 million)! However, some reports suggest a higher offer price of $3.26 per share, upping the ante from earlier offers[3].
Power Struggles and StrifeMonths of Corporate drama have seen smaller investors crying foul over declining transparency within the company. VGW has also faced tough sailing due to regulatory challenges in several U.S. states, forcing the closure of certain operations[1][2].
Regulatory Tug-of-WarVGW's been grappling with regulatory hurdles, particularly concerning its sweepstakes model. The company's already bid adieu to markets like Connecticut and Delaware due to regulatory concerns[2].
A New ChapterThe takeover deal is contingent on the approval from minor shareholders and enjoys the backing of a special committee of VGW directors. Meanwhile, VGW's forging alliances to champion social gaming, like the Social Gaming Leadership Alliance[2][3].
The Road AheadEscalante's aim to consolidate ownership is more than just a power move; it's a strategy designed to manage VGW's operations and navigate the complex regulatory landscape.
Laurence Escalente's plan to acquire the remaining 30% of Virtual Gaming Worlds (VGW) shares, worth approximately AUD 950 million ($617 million), is not just a power move, but also a strategic decision for managing business operations and navigating the intricate finance and regulatory landscape within the industry. The increased control of VGW could potentially lead to more efficient industry collaborations, such as the Social Gaming Leadership Alliance.
