Amaya Secures Payment Extension for PokerStars Acquisition
The Canadian gaming giant, Amaya, which possesses PokerStars, has reached a revised agreement with PokerStars originators, Isai and Mark Scheinberg. Initially obligated to settle a hefty sum of nearly $200 million by February 1st, Amaya has successfully negotiated a postponement. Rest assured, the payment obligation remains, albeit with a slightly higher price tag! This extension comes at the cost of regular installments to the Scheinbergs over a three-month period.
Recall the monumental $4.9 billion acquisition of PokerStars by Amaya back in 2014! While the majority of the sum was paid upfront, this $200 million represented the outstanding balance.
This recent arrangement proves advantageous for Amaya, providing them with some financial flexibility to concentrate on their operations and bolster their cash holdings throughout 2017. This strategy enables them to circumvent increased debt or potential penalties associated with missing the initial payment cutoff. It’s safe to assume that Amaya’s CEO, Rafi Ashkenazi, experiences a sense of ease having this matter settled!
Held certainty that our strategy demonstrates the robustness of our business framework. The resulting financial stream will enable continued investment in our achievements, while upholding the commitments established with the prior proprietors. Reviewing our 2016 performance, we are assured in our capacity to manage the outstanding acquisition disbursements.
