Following months of doomsday observations, PartyGaming Plc. regained its float price on the London Stock Exchange this week; the online gaming giant was up 6.9% to 117 pence on Tuesday. It originally floated at 116 pence.
Ranked as the world's biggest and most popular poker operator, PartyGaming Plc., owner of PartyPoker.com, knocked approximately GBP 2 billion off its market value in early September after issuing a statement predicting slow future growth in online poker.
In June 2005, the firm launched as the most valuable float the London Stock Exchange had hosted in five years, debuting at a staggering GBP 4.6 billion. PartyGaming quickly saw its market value rise to over GBP 7 billion, only to deflate below its original float price in what is largely regarded as one of the most dramatic losses in recent years. By mid-October, PartyGaming's value plummeted an additional GBP 1.5 billion due to rival companies' warnings.
The gaming firm, however, seems to have lifted itself out of this dire predicament by making changes to its operating platform. Last month, PartyGaming transferred PartyPoker.com players to a new operating platform, one that separates players who enter from third party sites from those who enter through PartyPoker.com directly. PartyGaming also launched what it referred to as the 'first step' in an aggressive marketing strategy, which includes cross-selling products, such as bingo and blackjack, on PartyPoker.com.
Subsequent reports released by industry analysts revealed PartyGaming would profit from its decision to split from its skins and its new marketing tactics, reassuring investors the company was a strong candidate for investment.