Probably the reason for everyone's rise today bar PRTY. Remember, Pokerstars is PRTY's biggest threat.
Posted: 4/1/2006
Speculation rife with PokerStars up for sale
Some of online gaming’s biggest names would be in the frame should PokerStars seek a sale rather than an initial public offering, analysts suggested today.
Speculation mounted after the world’s second biggest online poker room announced it had appointed NM Rothschild as advisers for a potential sell. It was reported that the company would be seeking a price of more than US$2bn (£1.16bn)
Greg Feehely, head of research at Altium Capital said that the lack of equities distribution at Rothschild meant a “sale rather than an IPO is far more likely”.
He added that the reported price tag could put off some potential buyers. “It may prove too big a deal for 888 and may be more likely for someone with Sportingbet’s clout unless one of the private companies such as Gala should be prepared to step up to the plate.”
Feehely added that William Hill or a newly-separate Ladbrokes “should not be discounted”.
However, Anthony Chow, technology analyst at Cannacord Capital, suggested that a buyer would likely be a company “without any poker assets”. “The problem with poker systems is that you can’t bundle them up,” he said.
But Chow agreed that a move towards an IPO was unlikely. “I wouldn’t have thought there will be many floats this year,” he said. He added that one of the few would be UltimateBet.
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