Forbes Magazine crowns new ‘King of Online Gambling’

The magazined published a profile of the Amaya Gaming Group CEO , detailing his bold 2014 acquisition of privately- held poker operator Rational Group (owners of PokerStars and Full Tilt).
The profile piece, written by Forbes Staff Editor Nathan Vardi, recounts how Baazov had been eying the operations at Rational Group for several months prior to making his move. It further details investment negotiations between Baazov and strategic investment fund Blackstone GSO, who would invest US$1 billion in the acquisition deal, its largest-ever investment.

In August Amaya Gaming completed the acquisition of the Rational Group for US$ 4.9 billion, a deal that would shock the online gambling industry. Baazov, the founder of Amaya Gaming, had spearheaded the acquisition investment for the purchase Rational Group by selling approximately US$ 1.7 billion of Amaya Gaming stock at US$18 per share.

Forbes labeled the US$ 4.9 billion acquisition of the Rational Group, the market leaders in online poker, as one of 2014’s most interesting tech buyouts. At the start of 2014, publicly- traded Amaya Gaming had revenue of US$ 150 million and a share price of less than US$ 7. The purchase of Rational Group Enterprises, who at the time reported US$ 1.1 billion in revenue, seemed like a futile hope of Amaya Gaming and Baazov.

Nevertheless through sheer determination, luck and intelligence Baazov managed to not only raise the capital needed for the corporate acquisition, but further convince the owners of PokerStars, the Scheinberg family, to sell its firm to the little- known but ambitious Amaya Gaming Group.
The acquisition of Rational Group has catapulted Amaya Gaming Group's stock from US$ 7.00 to US$ 28.50 (peaking in November at US$ 38.78). Baazov himself has further proved to be a real winner in the negotiations, with his 12% stake in Amaya Gaming now valued at over US$ 800 million.

While 2014 has proved to be a successful year for Amaya Gaming and its corporate value, financial analysts have predicted that Baazov and his firm face a tough year in 2015, as the operator will have to justify its leveraged acquisition of Rational Group. Amaya Group will likely face a decline in revenues, having withdrawn from Turkey, Russia and Germany.

The iGaming and sports betting industry will further await the highly anticipated launch of Amaya Gaming’s sports betting and casino product, as the firm looks to broaden its online gambling product inventory.