William Hill Confirms Merger Talks With Amaya
Amaya runs PokerStars, the world's biggest online poker business; however, it has struggled to expand its sports betting arm and wasn't able to further diversify the company. William Hill, on the other hand, is one of UK's biggest retail bookmakers via its numerous shops; however, it is getting beat up by its rivals from online competitors and new taxes.
Both companies have been seeking out a major deal for months. On Saturday, they said they were in talks about a £4.6bn all-share "merger of equals".
"The potential merger would be consistent with the strategic objectives of both William Hill and Amaya and would create a clear international leader across online sports betting, poker and casino," say the companies, which emphasized that no deal yet has been finalized.
People within the industry who have knowledge about Amaya and William Hill are appalled that the pair is considering to merge. One senior executive from a competitor company said, "Two wrongs don't make a right." Another one close to William Hill's hierarchy says," As a dish, it probably needs a lot of sauce to make it palatable for shareholders."
The skepticism is mainly the outcome of the turmoil Amaya and William Hill have gone through over the past year. That time, both companies have lost their chief executives, seen their share prices markedly fall, and have been subject to opportunistic takeover bids. However, the two companies believe it is vital to act on a quickly consolidating sector.
Competitors Paddy Power and Betfair merged in February, while Gala Coral and Ladbrokes are nearly finalizing their combination. The owner of Sportingbet, GVC Holdings, purchased Bwin last year after outbidding its rival 888 Holdings.
If the merger pushes through, the combined William Hill-Amaya would be huge enough to also enter the list of the biggest companies listed in London.
Source: http://ift.tt/2dU44Nv
from BankrollMob News - Poker / Casino / Betting
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