Investors and Traders Continue To Speculate on Possible William Hill/Pokerstars DealPublished on October 12th, 2016 5:08 pm EST
According to multiple media reports, William Hill and Amaya Inc. (the parent company of Pokerstars) are apparently still discussing a potential "merger of equals".
Late last week, shares of Amaya Inc. were halted on both the NASDAQ and TSX after it was revealed that there had been multiple bidders for the Amaya Inc. business. This included bids from both William Hill and GVC Holdings, which is the parent company of Party Poker.
After the halt came to an end, William Hill and Amaya Inc. released a joint statement in which they revealed that they were, in fact, discussing a merger, but that nothing had been agreed to.
GVC Holdings, which reportedly also submitted a bid to purchase Amaya Inc., has seemingly been shut out of the process and certainly seems to be Amaya's second choice for a potential merger.
Shares of Amaya Inc. continue to climb, as they are now trading at $17.26 on the NASDAQ, which is the highest level that they have traded at in nearly a year. Though William Hill and Amaya Inc. are still in negotiations, the market believes that there is a strong chance of the deal going through.
Some analysts warn Amaya shareholders, however, that they shouldn't expect a big premium in any deal, given the company's debt load and moderating growth in their poker product.
While William Hill and Amaya presumably continue to haggle over the finer points of the deal, many players on Pokerstars are hoping that a white knight in the form of Isai Scheinberg will emerge to take back the company that he founded.
Pokerstars had a sterling reputation during Scheinberg's time at the company, though this reputation has been tarnished considerably under David Baazov and Amaya.
Will a change in ownership lead to better day at Pokerstars? Faithful players at Pokerstars certainly have their fingers crossed.
Filed Under: Other Poker News