PokerStars.com was at the centre of intense speculation (see earlier reports) in January of this year when the world’s second largest online poker company hired a leading London broker, NM Rothschild to guide it in deciding whether to continue as is, sell or launch an IPO. Amid rumours of behind the scenes buying offers, the topic then went quiet, only to re-surface this week with further talk of a London listing.
The Israeli Scheinberg family own 75 percent of PokerStars, with employees holding the rest but there was no response to media enquiries about the renewed interest in a listing.
Analysts discussing the issue speculate that a listing could raise between US$2.5 billion and US$3 billion, valuing PokerStars right up there with Party Gaming, 888.com and other top of the totem pole companies. PokerStars is reported to generate profits of around US$200 million a year and is certainly in the big money leagure when it comes to tournaments and promotions involving millions of dollars..
London listings have continued to enjoy popularity this year after an exciting 2005. Excapsa had a successful debut recently, there are reports of Full Tilt Poker talking to brokers and financiers and the Playtech IPO has been predicted for late March – April by many. On the downside, the current attempts to ban online gambling in the States could introduce a dampening effect, although European executives have expressed doubts that such a ban will be passed in the face of the millions of Americans who regularly play online and the continued growth of the business, which last year enjoyed revenues of at least $10.9 billion and shows little sign of slowing down.