Playtech Investor Ader Waiting for DraftKings Offer

Playtech Investor Ader Waiting for DraftKings Offer

Jason Ader, the CEO of SpringOwl Asset Management is interested in the acquisition of Playtech by DraftKings. His investment firm is a major shareholder in the European gaming company.

Ader looking for an offer

On Friday, DraftKings reported a higher than expected loss in the second quarter. Hours after their second-quarter financials were released, Ader appeared for an interview with Bloomberg and shared his views on the acquisition. He said,

“They should be making a stock-for-stock deal with Playtech. If I were on their board, that’s what I’d be saying.”

Playtech Investor Ader Waiting for DraftKings Offer

Soon after his comments, the shares of Playtech showed heightened activity. By the end of the day, the company’s shares went up by 18% and its average daily volume was 89 times higher than usual. Playtech was founded in Estonia over twenty years ago and is currently headquartered in the Isle of Man. The firm makes software for online casinos, online sports wagering, and online poker rooms. It also makes fixed offs arcade games software and has scratch games services as well. Its portfolio is comparable to that of GAN Ltd. in the US.

Playtech and SpringOwl relationship

SpringOwl is based in New York and owns about 5% of the European gaming firm. The company hasn’t made any further comments on the acquisition yet. The size of Playtech can make it easy for DraftKings to acquire it. The gaming firm’s market capitalization is $1.64 billion while DraftKings is valued at $11.74 billion. DraftKings ended the June quarter with $1.2 billion in cash and has no debt. This means that a Playtech acquisition is relatively easy for the company if it is interested in the deal.

DraftKings hasn’t commented on Ader’s idea yet. However, the company could be finding it a lucrative deal, considering it is looking for vertical integration and aims to offer consumer-facing sports betting products. It is also focusing on back-end software and infrastructure. Getting Playtech on its side will help it bring all these capabilities under one roof.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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