Organisation: Flotation of Partygaming.com

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Analysis and commentary by Echo Research.

The planned flotation of Partygaming.com, the hugely successful online poker company, raised the spectre of a dotcom bubble mark II. The similarities were quickly spotted: the dazzling growth, the anticipated high stock market valuation, the likely FTSE ranking alongside bricks and mortar companies, the young techies set to become billionnaires. " Poker float rush revives memories of dot-com bust" noted The Independent (3/6), while The Times predicted that " a second round of dot.com hysteria is descending" (2/6).

But the 'hysteria' was tempered by a healthy dose of reality. Analysts were sceptical about the " fashion fad that could easily turn into a tank top" (Edinburgh Evening News, 3/6 ): "I wouldn't bet my pension scheme on companies like Partygaming" another told The Independent (5/6). Low-level mutterings were heard about the quality of management, and its motive for floating: if not to raise money, then why? Dwarfing all other doubts was the legislative threat looming from America, home of a large bulk of Partygaming's customers, and staunchly anti-gambling. " Partygaming gambles on regulatory risk" (FT, 2/6); " Legality of online poker threatens flotation" (Observer, 5/6), " US regulator casts shadow over boom in online poker" (Independent, 4/5) ran the headlines, suggesting that this dotcom bubble may have been popped before it has even floated.