Amaya gets offer from Baazov

Amaya Inc shares are trading higher this morning on news of a buyout offer that has been received from former executive David Baazov. The offer is to purchase the outstanding shares of AYA for $24 per share. Although the shares are up almost 15% today, they are trading at $21.05, which is signifigantly below the offer price, which represents the market’s determination of the odds this deal will actually go thru. Baazov’s offer is being backed by a group of hedge funds.

I believe AYA shareholders should reject the offer from Baazov and continue as a public company. AYA should continue developing its online gaming business as there is a lot more work to be done before this business matures.