Amaya Shareholder Wants Rid of David Baazov

The CEO of one of Amaya's big shareholders, SpringOwl, has made clear his company's position on David Baazov, Amaya's former CEO who is currently attempting to bid to buy back the company, very clear - they want him OUT of the equation altogether.

In a letter sent to Amaya's CEO, SpringOwl's Jason Ader has not only poured scorn on Baazov's latest "bid" for Amaya, but further has objected to Baazov, who is still under investigation for insider dealing, having any continuing relationship with company.

Ader cites Baazov's insider trading indictment as having caused reputational damage to Amaya as well as the ongoing poor communications with shareholders, misses on earning guidances, and other concerns regarding corporate governance decisions and strategic initiatives.

One point in particular Ader blames Baazov for is the $870m lawsuit loss against Kentucky State. Ader points to a similar case brought to bwin.party (of which SpringOwl were also a major investor), who settled in June 2013 for just $15m.

As to Baazov'z takeover bid, Ader firstly believes that the bid seriously undervalues the company. Secondly he puts the case forward that it is not the right time to sell given the short term benefits which should arise from recent investment in their casino and sportsbetting business. Finally he opines that if there was to be a sale that there would be plenty of other potential investors to look at.

Ader also raises the issue that many other commentators have debated; namely the credibility of Baazov's funding (only recently one of Baazov's inital 'investors' declared that they had never even heard of Amaya, let alone Baazov), and the fact that Baazov's current indictment could prevent any such takeover bid ever taking place.

Ader advocates a clean split with Baazov, that his shares be put in trust (as well demanding that the company stop paying his salary and legal costs), that they prioritize sportsbetting and casion operations as well as supporting poker, and that the company focus more on pro-active strategic initiatives than re-active ones.

All in all it's a huge blow for Baazov's hopes of taking Amaya private from one of the most respected CEO's involved in the iGaming business.