Amaya’s Stock Rises as PokerStars Sale Rumors Heat Up

PokerStarsOver the past few weeks the Amaya Gaming Group has seen its stock surge upward on the back of a potential buyout of PokerStars or some other iGaming asset.

Rumors abound as to what is causing the spike, but we’ve yet to see any tangible evidence that would cause us to pin down precisely what has been pushing the stock prices of the company higher and higher, to a point where it looks like it will be coming to a head by the end of the week.

Is Amaya buying PokerStars as some have suggested?

Is Amaya buying Full Tilt poker from the Rational Group, as others suspect?

The PokerStars rumors

The first hints that Amaya was closing in on a deal with PokerStars came via, which reported back in May that the initial surge during that time (the stock has continued to rise in the following weeks) was an indication that Amaya was close to a deal with PokerStars –which was the first anyone had really heard on this front.

Since the initial speculation by several other outlets have picked up the story, and even with others poo-pooing the rumors they have seemingly only gained traction.

However, for Amaya to purchase PokerStars they would need to raise some serious investment capital, considering the disparity between the two companies in terms of size, value, and revenue.

According to EGR (paywall protected article) this has happened, as the outlet is reporting that Amaya has raised $1 billion to make the sale happen. But the question as to what Rational asset they are purchasing is still unclear at this time.

The sale of a large privately owned company to a smaller publicly owned company is not an unprecedented move, and could allow PokerStars to wash its hands of its pre-Black Friday troubles, which has kept them out of Nevada and New Jersey up to this point, and is threatening to keep them out of California as well.

Amaya stock has been rising for several weeks

What we do know is that Amaya Gaming stock has been soaring and an announcement as to why is expected by the end of the day on Friday.

Amaya’s stock (AYA) is up over the $14 mark (in Canadian dollars) on the Toronto Stock Exchange with trading still open for another hour or so, a 17% increase for the day, and nearly triple its 52-week low of $5.61.

Amaya stock is now up 138% over the past year.

Something is happening, and whatever that something happens to be it appears to be a pretty big deal. Keep an eye on this space as this story continues to develop.

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