Flutter Entertainment Announces Purchase of The Stars Group

Published on October 2nd, 2019 12:55 pm EST

A merger of Betfair/Paddy Power and Pokerstars creates the worlds largest gaming company.A massive deal in the online gambling sector today after Flutter Entertainment, the parent company of Betfair/Paddy Power, announced an all-stock merger with The Stars Group, which is the parent company of Pokerstars.

Upon completion of the massive merger, Flutter shareholders will own 54.64% of the combined company, while Pokerstars' shareholders will own 45.36%.

Shareholders of both companies are embracing the news, as shares of the Stars Group are up nearly 30%, while shares of Flutter Entertainment are up 7%.

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The combination of Flutter Entertainment and Pokerstars will create the world's largest online gambling company.

The combined company will be incorporated, headquartered and domiciled in Dublin, Ireland, with a listing on the London Stock Exchange.

This deal continues the trend of industry consolidation - remember that Pokerstars absorbed Skybet for $4.7 billion, and now Betfair/Paddy Power and Pokerstars will be combining.

While Pokerstars continues to be the poker industry's 800 pound gorilla, they have struggled to become relevant with their other offerings, including BetStars. The combination of Flutter and Pokerstars will instantly create a powerhouse in the online poker, casino and sports betting sectors.

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This merger brings about some interesting questions, including:

1) Paddy Power has a long list of restricted territories that includes countries such as Canada. What will happen to players in these countries?

2) What types of cuts, if any, will be made when the two companies merge?

3) How will the rest of the industry react to this merger?

All in all, this is a very interesting development for the entire industry, and I expect that there will be a great deal of fallout from this news.

Source: Yahoo.com - Stars Group Trades Higher on All-Stock Merger With Flutter Entertainment

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Filed Under: Online Poker Rooms

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