Amaya Calls Off Merger Talks With William Hill
William Hill have once again failed in their attempts to create a strategic merger in a gambling market that is seeing major companies consolidating in order to compete in an evolving industry. Their attempts to merge with PokerStars’ operator Amaya have collapsed.
Following the much publicized criticism of the deal by their major investor Parvus, there was no chance of it passing the board for approval. Amaya realized that the merger was off the cards and released a statement in which they said they believed it would be in the interest of their company to remain independent.
The news was welcomed by William Hill investor Parvus who said in a statement, ”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.”
This latest failure by William Hill to puts them under further pressure as rivals Paddy Power an Betfair and Ladbrokes and Gala Coral have merged into super gambling companies. This trend of fewer yet much bigger companies in the gaming market is a result of higher taxes and increases regulation that has made every gambling dollar that much harder to compete for.
The last year has been tough for William Hill and there is a lot of uncertainty as to their future road map. Having declined a takeover bid from 888 and Rank Group, the focus is on their interim CEO Philip Bowcock to deliver the goods and remain as one of the top bookmakers in the world. Bowcock reacted to the failed merger talks with Amaya and said they were focusing in online technology and global market. He was also quick to add that they would ,” continue to consider strategic alternatives where they have the potential to create shareholder value.”