Amaya Gaming has recently cleared its intention of not being interested in offering any guidance regarding its 2016 earnings. The Montreal based Amaya appointed the committee of independent directors to take into consideration the CEO David Baazov’s $21-per share offer. Some significant updates have been released on the entire process including that a formal offer is still left to be received. However, Amaya was quite sure that it would receive such an offer in or by the end of February.
Baazov’s Management Under Wraps
Without a doubt, Amaya Gaming is looking forward and waiting to receive the expected offer. However, the issue has received remarks from other major companies too. Yeah, the parent company of Full Tilt and PokerStars, the largest online gambling brands has made clear that it did impose a kind of restriction on the way in which Baazov manages Amaya. The restriction included the amount of confidential information of the company to be disclosed with all the members of Baazov’s investment group.
Until this date, there has been no discussion on the people comprising the entire group of Baazov. The group is known to have assembled illegally to make alleged privatization bid. In addition to this, another suspicion is on Playtech, the UK’s most popular gambling technology provider. The media reports mentioned that Playtech has been in some association with Baazov. However, it is still unclear that whether it is planning to be an alliance with him or looking forward to a solo bid.
The Company’s Take
The interest of the entire gaming world is now in the declaration of Amaya Gaming. The company has made clear that until the time Baazov will continue to impend to submit an offer, it is not going to provide any guidance on its 2016 earnings. At the time when company will announce the results of quarter 4 and financial year 15 on March 14, no guidance will be offered on its earnings in the year 2016.
While talking about the company’s final decision, it is the most interesting of all. The decision is regarding the fall in the company’s share value followed by the quarter 3 earnings reports of the company. In this report, Amaya mentioned that it is not going to hit its 2015 earnings guidance. Without a doubt, the shares of Amaya have gone down to as low as C$18.08. It was further followed by the news to close down around 2%, which is around $19.50.
To add on, the company remarks that the results of its financial year 15 will be revealed only after the market will close on March 14. Earlier, Amaya used to release the company information before the market opened but it has broken the tradition this time. Thus, the company is showing some unexpected changes and is trying hard to stick to its decision of keeping the 2016 earnings guidance a big secret. The news has gained so much interest that the analysts of the West Coast are keen to cover it even at 4 in the morning.