Photo by Creative Commons, CC BY-SA 3.0
Publishers Clearing House, the company most will remember for the massive sweepstakes giveaways and giant checks, was sold earlier this year, and the buyer was ARB Interactive, a company that also operates Modo Casino, a sweepstakes casino.
The deal was for $7.1 million, and ARB Interactive assumed liabilities, including $378,000 in prize payouts.
Now, Publishers Clearing House announced a Prize Protection Program and a new CEO.
According to a press release, the Prize Protection Program is described as one that “guarantees that all future PCH prizes are honored regardless of ARB’s financial status. Funded with investment-grade assets held in FDIC-insured escrow accounts and managed through a bank-run investment vehicle, the program safeguards payments for large annuity prizes and reflects PCH’s commitment to trust and accountability.”
As for the new CEO, it’s Owen O’Donoghue. He was previously the Director of Gaming at Facebook, co-founded InfiniGods, and was the Chief Revenue Officer, and overall, has more than 15 years of experience in gaming and technology.
“Owen O’Donoghue’s expertise in gaming and digital engagement makes him the perfect leader to guide PCH into its next chapter,” said Patrick Fechtmeyer, CEO of ARB Interactive, in the press release. “His proven ability to drive innovation and build consumer trust aligns seamlessly with our mission to reimagine PCH as a leader in mobile-first, advertising-supported entertainment while honoring its iconic sweepstakes tradition.”
O’Donoghue had this to add: “I am thrilled to join Publishers Clearing House at this pivotal moment. With the Prize Protection Program, we are combining PCH’s iconic sweepstakes heritage with modern, secure digital experiences, ensuring every winner is protected while introducing mobile-first gaming that excites and engages users nationwide. We believe programs like this represent an industry best practice, and such safeguards should be standard to protect all sweepstakes participants.”
In April, Publishers Clearing House declared bankruptcy, and at the time, the company had about 105 employees.
In 2023, PCH ran into some issues with the FTC, and PCH settled with them for $18.5 million. However, as a result of that lawsuit and the company's closing down its e-commerce business, PCH declared bankruptcy.
At the time, there was about $40 million in debt, and the company had $490k in cash.
This came after posting $879 million in revenue in 2018, but the pandemic slowed that tremendously.
It was also revealed in court documents that PCH owed $26 million over the next 60 years to prize winners.
Now, under new ownership, it appears things may be getting back on track.