Amaya Shows Interest in Cryptologic

April 14, 2011 | News Category: Casino Software

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Since the news broke recently that Cryptologic could be up for sale, much interest has been generated. Although the online casino software provider has not managed to show a profit, and has in fact shown losses for quite some time now, the interest that has been generated is quite substantial.

A number of companies have expressed their interest in purchasing the online gaming software provider, one of which is Amaya. Amaya is an online gambling company that has already managed to gather together five percent of Cyrptologic's stock.

Amaya Gaming Group Incorporated is based in Montreal, Canada.. The company is a server and network based online gaming company. Amaya has recently been the first to successfully apply for an online gaming license in the Dominican Republic. Amaya has told the public that it plans to begin a new domain later this year, and will be offering slots, table games, such as roulette, craps, baccarat, and blackjack. Other games, such as online poker will also be offered as part of the package.

When Cryptologic announced that their ailing company that is in some ways highly successful, yet in other ways continues to lose money, was planning to do a strategic review, interest was generated in the possible acquisition of the online gaming software company.

However, there has been no indication as to whether the company is really up for grabs or not. At the time, a statement that had been released by Cryptologic read as follows: "This review is at an early stage and will consider a number of strategic options including the possibility of an offer being made for the company or a disposal of part of the business."

The statement stressed: "The board wishes to stress that there can be no certainty that any offer will be forthcoming." Even with this clearly stated, interest in the software company has been notable.

Cryptologic had appointed the financial adviser, Deloitte Corporate Finance, to look into the 35 percent drop in overall revenues over the past few years. Even though Cryptologic is showing such big losses, the online gambling company will not be cheap should it be sold. The company has substantial assets, including IT, IP, and product assets. Even though the company has been steadily losing money, it still has a fairly valuable cash position.

Once the news of the strategic review was publicized, Cryptologic's share prices quickly rose. Even if the share prices did not rise up to their all time high, they nearly doubled in their current value.