David Baazov, who as chairman, president and CEO of Canada’s Amaya Inc. transformed the company from a content supplier into the world’s largest online gaming operator, will not seek reelection to the company’s board of directors.
The news came on an investor conference call from Interim CEO Rafi Ashkenazi, who has filled in for Baazov since the CEO took a leave of absence while battling an indictment from the Canadian government for alleged insider trading in connection with Amaya’s acquisition of Rank Group, parent of leading worldwide online gaming sites PokerStars and Full Tilt Poker.
Ashkenazi also confirmed that Daniel Sebag, Amaya chief financial officer, will not seek reelection to the Amaya board.
Resigning from the Amaya board does not mean Baazov, who has expressed confidence the charges against him will not stick, is relinquishing control of the company. On the contrary, many observers feel it is a sign that he is proceeding with a plan to take the company private. A separate press release from Amaya announced that new details on any such transaction are being released due to confidentiality agreements.
“To date, several parties, including David Baazov, who is on a leave of absence as chairman and chief executive officer of Amaya, have entered into confidentiality agreements with Amaya,” said the company’s new release. “A number of these parties have received management presentations and are conducting due diligence.
“While there can be no assurance that this process will result in a transaction of any kind, the Special Committee is focused on completing its review of strategic alternatives in a timely manner.”
The ongoing saga of its CEO has had no ill effect on the company’s revenues, which were up 6 percent to $288.7 million for the quarter. Net profits doubled over the same quarter last year, to $55.5 million.
