Online advertising and search group Media Corporation is selling its internet portal casino.co.uk in order to focus on its other activities.
Cryptologic is paying an initial £3m for the business with a possible £625,000 additional payment depending on performance. The business made profits of £620,000 in the year to September 2006 but most of that period was before the US authorities clamped down on internet gambling.
Media Corp retains gambling.com, which has a similar focus, but the focus is on moving into other sectors such as financial and travel.
The rates advertisers are willing to pay to get their sites at the top of the lists on gambling.com have started to recover. Media Corp can run gambling.com but the sale agreement of casino.co.uk stops it competing in any other way for two years.
The initial cash from the sale will swell Media Corp’s cash balances to £7m. This will give it scope to acquire more websites and online advertising operations.
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