William Hill and Amaya have announced developments are in place for a possible merger. William Hill is one of the most popular bookmarkers in the world. The UK gambling giant has the biggest network of betting shops in the country. Amaya Inc. is the parent company of PokerStars and is based in USA. PokerStars is considered the largest online poker website in the world. With this in tow, uniting these two gambling powerhouses will definitely turn out to be a blockbuster merger.
The press release mentioned that the board members of Amaya and William Hill that they are omitting speculations to confirm that they are indeed discussing the idea of a potential equal share merger. The merger between these two will give birth to an international leader that will provide quality online sports betting, casino games, and poker.
Tumultuous Conditions Urged Merger Talks
Canada-based Amaya Inc has experienced an interesting 2016 season so far. It’s CEO David Baazov has declared interest to purchase the company for $21 per share and taking over Amaya as a privately-owned company. Amaya’s special committee together with the Autorité des marchés financiers have filed charges against Baazov and his associates over the issue of insider trading.
Rafi Ashkenazi who first assumed the role of interim chief executive is already its new CEO. Ashkenazi is optimistic that the potential Amaya-William Hill merger will rejuvenate the energy of its employees and spark new enthusiasm from investors.
Meanwhile, William Hill originally wanted to acquire 888 Holdings in 2015. 888 Holdings is the parent company of 888 Poker and is considered to be the largest online poker website in the world. The bid wasn’t tempting enough for 888 Holdings. Eventually, The Rank Group and 888 Holdings have merged with the interest of buying out William Hill but to no avail.
What’s Next for the Potential Amaya-William Hill Merger?
Amaya and William Hill have confirmed merger discussions are taking place. However, it may result into an actual merger or now. It depends on how the agreement will be made and based on all share merger of equals.
UK’s William Hill has been finding ways to improve its global presence and augment its online business. It believes that Amaya Inc can complement their strategic goals. William Hill recently announced to shareholders in March that it would have a £25 million decline in online profits. It’s the results of the struggles in online gambling programs.
The interesting news at the moment is that the merger news has seen Amaya Inc share prices to shoot up to $23.41 which was a 9% increase. This resulted to speculations that other industry players are interested in acquiring Amaya Inc.