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Amaya Gaming’s share price rose 5% on rumors that it was in pursuit of a possible acquisition. The main target appears to be the world’s largest online poker room, PokerStars. Such a move would allow Stars to re-enter the US market on a clean slate.
The company was forced to issue a response Monday afternoon.
“In response to trading activity that may stem from market rumours that have come to the company’s attention regarding a potential strategic acquisition, Amaya stated today that … [it] regularly evaluates potential acquisition opportunities,” the company, which provides gaming products and services for both online and physical gambling industries, said in a statement.
“There can be no assurance that any such discussions will ultimately lead to a transaction.”
Amaya Gaming is likely planning to sell its poker platform, Ongame Network, by the end of second quarter in order to finance “a significant acquisition,” Neil Linsdell, analyst with Industrial Alliance Securities, wrote in a May 20 note.
Amaya’s share price rose 14% on Friday.
- Aaron Goldstein, Gambling911.com
