PokerStars parent company to drop Amaya corporate name
Operator says rebrand needed to better reflect the modern nature of the firm, while analysts suggest need to move on from “tarnished” Amaya name
Amaya has announced plans to change its corporate name to “better reflect” the modern nature of the Toronto-listed operator.
CEO Rafi Ashkenazi said yesterday on Amaya’s FY16 earnings call that the firm would be seeking shareholder approval for a name change at a meeting to be held in the summer.
No new name was mooted, but analysts suggested the PokerStars brand name would feature prominently, similar to the switch Intertain made recently when it adopted the Jackpotjoy name.
“The Amaya you see today is quite different than the Amaya of 2015,” Ashkenazi said.
“And by the end of this year, we expect to have opened a new chapter in our growth story. We can now devote more energy towards extending our story and sharing our vision more effectively.
“To that end, at this year’s upcoming Annual Shareholders Meeting, we plan to seek approval to change our corporate name to better reflect the company we are today and the company we aim to be in the future.”
As part of the rebrand, Ashkenazi also pledged to increase focus on corporate communications and investor relations in an effort to improve Amaya’s status in the investor community.
US gaming analyst firm Eilers & Krejcik Gaming suggested the shift could also herald a re-listing away from Toronto, similar to Jackpotjoy.
The analysts added: “It’s hard to know if this is indicative of a broader shift in corporate strategy or is simply a move to leave behind the tarnished “Amaya” brand following the resignation of David Baazov and the ongoing AMF investigation”.
Baazov recently sold around a third of his stake in Amaya for approximately £81m, after the firm agreed to a new debt refinancing agreement that gave the lenders the power to trigger a default if Baazov takes control of Amaya.
Analysts said the sale was a net positive for Amaya, as Baazov prepares to face insider trading charges in November, even as he remains the single largest shareholder with around 12% of the company.
“The further Amaya can distance itself from one of the most tainted figures in gaming, the better,” said Eilers & Krejcik.