Amaya Gaming stock rises on rumours
Heavy speculation over the weekend focused on Amaya Gaming Groups possible purchase of online poker giant PokerStars, with Amaya’s stock value rising 30% since Friday 23rd May. However the online software provider company has released a statement following the rapid rise of its stock saying:
Pokerstars the online poker giant which is likely out of reach for Amaya at present.
“In response to trading activity that may stem from market rumours that have come to the company’s attention regarding a potential strategic acquisition, Amaya stated today that … [it] regularly evaluates potential acquisition opportunities,” the company, which provides gaming products and services for both online and physical gambling industries, said in a statement by Amaya.
“There can be no assurance that any such discussions will ultimately lead to a transaction.”
One thing Amaya are about to do is sell its poker platform, Ongame Network, by the end of second quarter in order to finance “a significant acquisition,” Neil Linsdell, analyst with Industrial Alliance Securities, wrote in a May 20 note.
Mr. Linsdell also said in the note he expects Amaya is looking to “‘trade up’ to a larger poker platform.”
But the question is would that platform be PokerStars? It seems highly unlikely at this point as PokerStars is a privately held company and worth billions of dollars, observers say Amaya Gaming has only some $500 million in disposable cash for any acquisitions, leaving them well short of any approach.
However some observers are saying a merger or a reverse sale could be more likely.
