Post by Blitz on Sept 5, 2024 8:16:23 GMT -5
Kambi Refutes Rumor of Potential Takeover by Genius Sports
Posted on: September 4, 2024, Todd Shriber
www.casino.org/news/kambi-refutes-rumor-of-potential-takeover-by-genius-sports/
Kambi Group Plc (OTC: KMBIF), a provider of technology services to sportsbook operators, denied that it’s engaged in takeover discussions with Genius Sports (NYSE: GENI).
A Kambi booth at an industry convention. The company denied it’s in takeover talks with Genius Sports. (Image: Kambi)
Speculation recently surfaced that Genius, a data provider to sportsbooks, was mulling a takeover of Sweden-based Kambi, but Anders Ström, chairman of the Kambi board of directors, said no such conversations have taken place.
While Kambi tends not to comment on rumour and speculation, I can confirm that Kambi is not engaged in any such discussions,” he said in a statement.
With its shares up 15.35% year to date, Genius has the currency with which to hunt for deals. It has a market capitalization of $1.5 billion, which is well above Kambi’s market value of $370.1 million.
Kambi Takeover Rumors Getting Old
Rumors about Kambi being a target aren’t new. In fact, they date back to at least the second quarter of 2023, and the purveyors of the chatter have some factors to hang their hats on.
In 2022, the Stockholm-listed company did away with a poison pill provision. Companies adopt poison pills in attempts to fend off unsolicited acquisition offers, essentially diluting the aspiring buyer by selling stock to other investors at below-market prices. With that provision gone, Kambi is an easier target for a buyer.
Furthering the speculation is the fact that Kambi recently pulled its longer-ranging financial targets, in part citing regulatory issues in Brazil. That prompted the resignation of then-CEO Kristian Nylén. High-level executive departures often stoke takeover talk.
Additionally, more gaming companies are looking to bring sports wagering technology in-house, which could further the allure of Kambi as a takeover candidate. The company’s North American clients include Bally’s, Churchill Downs, Penn Entertainment, and Rush Street Interactive, among others. Kambi also works with gaming companies throughout Australia, Europe, and Latin America. The corporation recently extended its partnership with Rush Street.
Genius Sports Denies Rumor, Too
Genius Sports also denied the scuttlebutt.
As policy, we do not comment on unfounded and ill-informed rumors. To prevent any further speculation, we can confirm that we are not involved in any discussions of this nature with Kambi,” said CEO Mark Locke in a statement.
While Genius might not be interested in Kambi, there could be an ample number of other potential suitors should the firm put itself up for sale. After the company adopted the poison pill provision in 2022, Alinea Capital Management, a Norwegian hedge fund, said there could be as many as six US-based companies interested in buying Kambi.
Posted on: September 4, 2024, Todd Shriber
www.casino.org/news/kambi-refutes-rumor-of-potential-takeover-by-genius-sports/
Kambi Group Plc (OTC: KMBIF), a provider of technology services to sportsbook operators, denied that it’s engaged in takeover discussions with Genius Sports (NYSE: GENI).
A Kambi booth at an industry convention. The company denied it’s in takeover talks with Genius Sports. (Image: Kambi)
Speculation recently surfaced that Genius, a data provider to sportsbooks, was mulling a takeover of Sweden-based Kambi, but Anders Ström, chairman of the Kambi board of directors, said no such conversations have taken place.
While Kambi tends not to comment on rumour and speculation, I can confirm that Kambi is not engaged in any such discussions,” he said in a statement.
With its shares up 15.35% year to date, Genius has the currency with which to hunt for deals. It has a market capitalization of $1.5 billion, which is well above Kambi’s market value of $370.1 million.
Kambi Takeover Rumors Getting Old
Rumors about Kambi being a target aren’t new. In fact, they date back to at least the second quarter of 2023, and the purveyors of the chatter have some factors to hang their hats on.
In 2022, the Stockholm-listed company did away with a poison pill provision. Companies adopt poison pills in attempts to fend off unsolicited acquisition offers, essentially diluting the aspiring buyer by selling stock to other investors at below-market prices. With that provision gone, Kambi is an easier target for a buyer.
Furthering the speculation is the fact that Kambi recently pulled its longer-ranging financial targets, in part citing regulatory issues in Brazil. That prompted the resignation of then-CEO Kristian Nylén. High-level executive departures often stoke takeover talk.
Additionally, more gaming companies are looking to bring sports wagering technology in-house, which could further the allure of Kambi as a takeover candidate. The company’s North American clients include Bally’s, Churchill Downs, Penn Entertainment, and Rush Street Interactive, among others. Kambi also works with gaming companies throughout Australia, Europe, and Latin America. The corporation recently extended its partnership with Rush Street.
Genius Sports Denies Rumor, Too
Genius Sports also denied the scuttlebutt.
As policy, we do not comment on unfounded and ill-informed rumors. To prevent any further speculation, we can confirm that we are not involved in any discussions of this nature with Kambi,” said CEO Mark Locke in a statement.
While Genius might not be interested in Kambi, there could be an ample number of other potential suitors should the firm put itself up for sale. After the company adopted the poison pill provision in 2022, Alinea Capital Management, a Norwegian hedge fund, said there could be as many as six US-based companies interested in buying Kambi.