Mike Sexton Loses $500Million In Party Poker Deal3 years ago
As an original shareholder of PartyPoker, Mike Sexton was primed to rake in a fantastic return on his investment when the site became the most popular place to play online pokerin the early days of the industry.
Sexton was in on the ground floor back in 2001 when PartyPoker was first to advertise on television. That marketing salvo was a stroke of genius, catapulting PartyPoker to the top of the charts during online poker's infancy.
Sexton told podcaster Joey Ingram:
"In less than four year's time, after launching PartyPoker, from just a little poker site, they went public for nine billion dollars."
About a year and a half prior to the public offering, Sexton recalled how PartyPoker offered to buy him out. The WPT commentator held out for $15 million, eschewing the $10 million offer put forth by PartyPoker.
What seemed like a shrewd move at the time turned out to be not so in hindsight. The Poker Hall of Famer estimates that he lost $500 million by selling his stock early instead of waiting longer to see how his investment might play out.
Sexton never regretted his decision, comparing the move to playing a hand of poker. He said to Ingram that it was like looking at 5-7 suited in the hole, and watching other players raise and re-raise preflop. After mucking his hand, "the flop comes out 8-6-4."
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