David Baazov Makes $6.7b Offer to Take PokerStars/Amaya Private

pokerstars logo 138031

Former CEO David Baazov has put together an offer of $6.7b to take PokerStars’ parent company Amaya private and the company is seriously considering the offer.

Forbes and other outlets are reporting that Baazov and his financial backers are offering C$24 for outstanding shares of Amaya. He would also contribute his 17.2% stake in the company.

Baazov orchestrated the initial deal that saw a little-known Canadian gambling company called Amaya put together a massive $4.9b deal to buy PokerStars after Black Friday in 2014.

He resigned as CEO for the company when securities regulators in Quebec charged him with insider trading earlier this year.

Amaya Stock Spikes

Shares in Amaya have already risen some 18% as of Monday thanks to the offer from Baazov.

david baazov

The Baazov deal comes hot off the heels of a potential William Hill merger that went south. Baazov believes that PokerStars should be operated as a private company and reiterated his point in a letter to Amaya’s board:

As the online gaming industry continues to mature, I believe that it is in the best interests of Amaya to be positioned as a private company. While Amaya incurs the substantial costs and scrutiny associated with being a reporting company, it obtains no benefit from being public.

PokerStars stock has tumbled around 40% since it was initially listed as a publicly traded company.

Baazov has shown a penchant for gathering investors over the years and said he was prepared to put up $200m that Amaya needs in February to make a $400m payment to PokerStars previous' owners, the majority going to Mark Scheinberg.

Amaya also released earnings on Monday that showed online poker revenues were steady and casino and sports betting operations continue to grow.

Best Poker Sites - Editor`s Pick