Mitchell A. Garber, the chief executive of PartyGaming, will step down Friday, three months after announcing a desire to return to North America for family reasons.
Mr. Garber, a Canadian national, is succeeded by James A. Ryan, chief executive of St. Minver Ltd., the Gibraltar-licensed online operator.
"I am hugely excited by the scale of the opportunity," said Mr. Ryan, also a Canadian national, in a prepared statement Thursday. "And with the support of PartyGaming's Board and management team, I am confident we have an exciting and prosperous future."
Mr. Ryan served previously as chief executive of Excapsa Software Inc., the Toronto-based software developer, and chief financial officer of CryptoLogic Ltd., the Dublin-based software developer.
Meanwhile, the company has promoted John O'Malia to managing director, a new executive position on the board. Mr. O'Malia served previously as the company's chief games officer.
However, Michael E. W. Jackson, non-executive chairman of the London-listed operator, has resigned.
"I'm heading towards the fourth anniversary of my involvement with PartyGaming and having overseen its first challenging years as a public company, including the closure of its US-facing businesses, it's now time for me to leave and pursue other business interests," said Mr. Jackson, who will step down in the coming months.
Mr. Jackson saw PartyGaming through its June 27, 2005 I.P.O., whereon the company boasted a market capitalization of $9 billion. The initial market cap has since dwindled, however, and from Thursday stands at $2.04 billion.
Shares in PartyGaming, which have lost 197 percent since their July 27, 2005 all-time high, 173p, closed even at 26.25.
Mr. Garber will remain available to the company until July 31 as part of the handover process, it said.
Calls to PartyGaming were not immediately returned.
Andrew P. Lee, an analyst with the company's broker, Dresdner Kleinwort, could not be reached for comment.
Editorial Comment
What does Mr. Garber's resignation portend?
Will investors rally as the chief's "planned share sale program" expires?
Is the company soon to announce the successful conclusion of its looming legacy issues with the U.S. Justice Department -- and thereby resume dividending its cash?
Will the company's sports book -- gathering momentum ahead of June's UEFA European Football Championship -- see increased growth under Mr. Ryan?
We don't know, but it sure makes for a tasty batch of talk soup.
Undoubtedly, this is an exciting time for the company. The successful resolution of U.S. negotiations coupled with long-held consolidation rumors -- a la "the prettiest girl at the dance," remember? -- could serve (one brokerage wrote recently) as a "short-term bullish catalyst" for shares.
After 2005, the very verde año its I.P.O. was more than three-times oversubscribed, and its subsequent U.S.-engendered travails, PartyGaming -- at a first and highly-editorialized glance -- looks poised for a rebirth.