Businesses keep changing regarding ownership day in day out. It was a surprise by the rumors about a takeover of PokerStars. David Baazov, the CEO of Amaya Inc., a Canadian based company is the man who is behind the buy-out. It was a surprise and a malicious act since the largest online poker website was acquired by the same company that the CEO is working currently. Two years ago, PokerStars was purchased by Amaya Inc. to expand its businesses in the poker industry. It valued $4.9 billion dollars including Full Tilt Poker in the deal and it’s on its way for a buy-out from David Baazov and other investors.
Amaya Inc. owners have reported that they do not have any proper communication from the CEO concerning the takeover and it has prompted them to seek services from other companies to advise them on the same issue. Some of the service providers include Barclays Capital Canada Inc., Blake, Cassels & Graydon LLP as financial advisors, consultants and legal advisors since they feel the CEO’s step is not official and juridical. He should be investigated to understand deeply what he is hiding from the rest of the company.
There is unethical business conduct going on at Amaya Inc. as there are reports that David Baazov with other four investors has set an offer of C$21 per share as the market value so that they can raise a forty percent increase in the value of the shares. There are unconfirmed reports that they have offered Goldman Sachs and Deutsche Bank to provide them with the financial advice that they may need in the process of the buy-out and making the proposals to Amaya Inc., who currently own PokerStars. The reports are not going down well as Amaya Inc. still insists they have not received any formal proposal from the investors. It will not be a smooth transition because they board feels that they will not continue or give the proposal to mature since they are not willing to do so.
Amaya Inc. has confirmed that even if the project is rolled out by the said investors, they will not have the time even to consult shareholders, but they will ignore and frustrate David Baazov and his friends. Amaya Inc. has not been performing well for the last twelve months in the stock markets. It gives the board and other speculators a hard time to determine which price they may end up agreeing if at all they agree with the buyout.
Amaya Inc., shares have decreased by about 49% making it risky for investing in part of their business. Global Maxfin, a consulting firm according to a Wall Street report stated that the offer David Baazov made to the shareholders was an opportunistic offer, and their primary aim was to entice them to agree with them when they will need them. The company, however, advised the shareholders to hold on and wait for other offers since they will be offered a better deal.