Drummond finalises Media Corp exit

Former Media Corp chairman Jason Drummond has sold off his 10m ordinary shares in the business, and as a result no longer has a notifiable interest in the troubled internet advertising firm and egaming operator.

Drummond’s exit comes two weeks after the group announced that it was to place its ailing poker and casino business Purple Lounge into liquidation “due to historic and operational failings within the business.” He had stepped down from his role as chairman in February this year, resulting in a reshuffle which saw his brother Justin replace him, and former Purple Lounge boss Sara Vincent become interim group CEO.

The first signs of trouble emerged in April this year, when Purple Lounge’s operations were “temporarily suspended” following a legal claim for “in excess of £300,000″ brought about by CD Casino.com, relating to “an agreement dating back to February 2007.” This resulted in the collapse of Media Corp’s proposed reverse takeover of Gaming Media Group, and saw Vincent and Justin Drummond also depart the company.

A statement from Malta’s Lotteries and Gaming Authority (LGA) released in May then revealed that it had revoked Purple Lounge’s egaming licences as requested by Media Corp. The licences were terminated on 23 April, shortly before the suspension of Purple Lounge was officially announced on 27 April.

This ultimately led to chairman Phil Jackson and interim CEO Adam Fraser-Harris taking the decision to liquidate Purple Lounge, announced at the end of May. As a result all staff within the division have been made redundant, but Media Corp is yet to announce its plans to repay player balances.

It is unclear how this will affect Media Corp’s proposed online gambling joint venture with London’s Hippodrome Casino. The launch of the JV, which would see the Media Corp provide online casino and poker products for an egaming site, has been repeatedly delayed after originally being set to go live earlier this year.