Online Gambling's Possible Takeover Target

Published Saturday, November 15, 2014 -
Online Gambling's Possible Takeover Target

Canadian online gambling firm Amaya Gaming is doing well according to recent financial reports and as the company continues to grow in leaps and bounds rumours are circulating regarding the possible purchase of Digital Entertainment by the mega online gambling company.

An industry source stated,  "Negotiations are confirmed but, to date, nothing concrete has been arranged," the source continued,  "The two groups still need to discuss many important details and there are also some legislative issues that still need to be looked into." After the negotiations were leaked and the Financial Post online news source posted the possible deal Digital Entertainment  clarified its position with a statement that did not rule out the possibility of a takeover.

"Further to recent media speculation regarding a possible bid for, the Board of confirms that it has entered into preliminary discussions with a number of interested parties regarding a variety of potential business combinations with a view to creating additional value for shareholders,"  The statement added, "Such discussions may or may not result in an offer being made for the Company," "However, as all such discussions remain at a preliminary stage, there can be no certainty as to whether or not they will result in any form of transaction with any party."

It has been suggested that there are indeed other possible bidders for the assets in the wings. Online gambling software developer Playtech and possibly the U.K.’s Ladbrokes are rumoured to be interested in acquiring the firm. The timing of the possible acquisition is also of interest for analysts who are looking at the possibility of changing online gambling legislation in Germany which may deal an adverse hand to which has extensive investment in the German market from which it gains a great deal of its revenue.

Consolidation in the online gambling industry has taken on new dimensions over the past few years and could very well become part of the trend.


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