The Stars Group is being sold
Flutter and the owner of PokerStars are going to merge into a single entity
There has been some evidence that things weren’t right with The Stars Group (TSG), owner of the PokerStars poker platform, but an announcement just made today has everyone reeling. TSG is being acquired by Flutter Entertainment, formerly called Paddy Power Betfair, and the result is going to be the largest online gambling and gaming platform around.
The all-share deal will see TSG shareholders receive 0.2252 Flutter shares in exchange for each TSG share held. After the completion of the merger, Flutter shareholders will own about 56.64% of the new company, with TSG shareholders holding the rest of the share capital.
The new entity will be based in Dublin, Ireland and will be listed on both the London Stock Exchange and the Euronext Dublin exchange. It’s a deal that will see each entity bring “a proven track record in using product and brand leadership to create low-cost customer acquisition channels, while optimising value through product cross-sell” and which will “benefit from an enhanced global platform and improved local market reach.”
The deal still has to be finalized, but everything looks to be in place. Speaking on the merger, TSG CEO Rafi Ashkenazi states, “This exciting combination will allow us to enhance and accelerate our existing strategy. In recent years, we have transformed TSG from a single product operator in poker, to a diverse global leader with multiple product offerings across poker, gaming and sports betting. The combination with Flutter will further enhance our company’s core strengths, and position us strongly for the future in this rapidly evolving industry. I’m delighted to be joining the Board of the Combined Group and to serve as its COO.”