Teddy Sagi sells 10% of his Playtech Stake
Playtech has emerged as one of the most profitable and successful software developers, with many online casinos being powered by it. Teddy Sagi is the founder of this lucrative company and his reputation precedes him, so everyone was surprised when he announced that he will be selling 10% of his shares. In is highly competitive industry it is not unheard of for both companies to merge with others or acquire lesser ones, and this type of transactions frequently go unnoticed.
In this case, it comes as no surprise that people are wondering what might’ve prompted Teddy Sagi to sell a part of his shares. To put things into perspective, this transaction made him $350 million richer, but it is hard to believe that money alone determined the founder to act in this way. When interviewed, he told reporters that he intended to help the company by making the stock more liquid, while cashing in was just a byproduct.
His argument stands up to scrutiny even though there are many who claim that there is more than meets the eye about this sale. The company in charge of selling the stock will be Brickington Trading which is also owned by Teddy, who will retain a significant percent of Playtech. After setting 10%, he will still be left with 39% of the shares which is significant and suggests that he is still fully behind the company.
Playtech produces software for online casinos and if we look back, it is obvious that this is one of the most successful companies in this niche. They cover more than slot games and video poker titles that represent the bread-and-butter of online casinos and got involved in the competitive world of online poker. iPoker is among the networks that dominated the industry for many years and it is still a force to be reckoned with, even though Pokerstars is now the top dog.
Only time will tell what the future will bring and whether the sale of shares will be interpreted as a signal by other players in this industry. It is hard to believe that those who own Playtech shares will be selling them at a frantic pace as a result of Teddy Sagi’s sale. The company has enjoyed a spectacular growth over the years and everything suggests that it has the resources to continue this trend.