William Hill Drops Amaya
After yesterday's revelation that some major shareholders in British betting company William Hill were having major doubts about merging with gaming company Amaya, it's come as no real big surprise today to learn that the talks between the two companies have collapsed and that it looks like this is one deal that won't be happening at all anytime soon.
Amaya, the owners of PokerStars, have tried to put a brave face on the failure of the merger by saying that it would be better for it's shareholders if it remained an independent company, but anyone who's been watching this over the past week or so will know that it's the William Hill board that got the cold feet and pulled out of this. The letter that the hedge fund Parvus Asset Management, that owns almost 15 percent of William Hill, sent to the board, was damning enough for the British to walk away.
Mads Gensmann, the co-founder of Parvus, said yesterday, “We’re pleased that the board has decided to cancel the talks with Amaya, and, from our perspective, we’re looking forward to working constructively with the board with regard to creating shareholder value for William Hill owners.”
William Hill, which is also a major player in the Nevada sports betting world, with over 100 sports books in the state, is still in trouble as its European competitors merge with each other to create bigger companies. But even for them, it seems, merging with Amaya was one step too far.