Losses force suspension of Purple Lounge

May 1, 2012 by Jenni Shuttleworth

Print this page
Following increased losses, Media Corp has temporarily suspended its online gaming site Purple Lounge.
Purple lounge

In a statement last week, Media Corp said that as a result of recent losses, the directors are in the process of considering a number of options for Purple Lounge to preserve the company's cash and value in its other divisions.

In preparing the interim financial results for the six months ended March 31, Media Corp said that “it has become clear that the Purple Lounge is trading materially behind the same period of the previous financial year, which will result in increased losses for the division and, as a result, the company as a whole."

As at March 31, the company had cash balances of £400,000 with an additional £250,000 received on April 4 from the disposal of loss-making publishing assets.

The directors believe that the online gaming site has suffered as a result of negative trade press (much of which the directors consider “totally unfounded”), particularly surrounding the litigation brought against one of the company's subsidiaries by CD Casino.com.

A statement read: “Media Corp has not received dividends or cash payments from Purple Lounge during its ownership and has loaned over £900,000 in the last few months. The options under consideration may be directly impacted by the outcome of the company's stated intention of undertaking an acquisition or acquisitions. In the meantime the company has temporarily suspended the site.”

Atari eyes real-money gaming

Atari, the legendary maker of classic video games behind titles such as Asteroids and Pac-Man, is entering the world of real-money gaming via a partnership with Pariplay.

Ader pressing Bwin

The New York-based activist investor Jason Ader (pictured) is taking on bwin.party by proposing four directors for the board of Bwin, the parent company of PartyPoker and others, through his company SpringOwl Asset Management.

Sportradar and SportAccord sign MoU

Sports betting specialist Sportradar and SportAccord, the union of all Olympic and non-Olympic sports international federations, signed a memorandum of understanding during the 2014 SportAccord Convention to align their prevention and education approaches on sports betting integrity.

Related articles

Subscribe to InterGame today

Our Publications

intergame

InterGame is the only monthly magazine covering the international coin-op amusements and gaming industry.

Learn more

intergaming

InterGaming is the leading monthly magazine covering the international land-based casino and gaming industry.

Learn more

intergamingi

Published bimonthly, iNTERGAMINGi is the leading publication for the growing international online gaming industry.

Learn more

Year Book

An extensive annual review of the industry covering all three gaming sectors and including a global directory of suppliers.

Learn more

intergaming Law

InterGaming Law is a bi-annual magazine, launched to meet increasing demand for an independent international publication dedicated to legal developments affecting the global gaming sector.

Learn more

Coin–op Community

Coin-op Community is an online marketplace where buyers meet sellers, produced in association with InterGame.

Learn more

Our Partners

This website uses cookies to enhance your experience and allow key parts of the site to work.
By browsing this website you are giving us your consent to set cookies. Learn more ›