It has been a trialling few last months Teddy Sagi, an Israeli entrepreneur who helped establish one of the cutting-edge iGaming developers in the world, Playtech. Starting out rather early, back in 1999, nothing suggested that Mr. Sagi would one day be ousted.
Sagi Sells His Remaining Stake in Playtech
There has been a lot of controversy surrounding Playtech founder Teddy Sagi’s share and participation in the company. Pressured by investors and activists, Mr. Sagi has long been caught in a battle to keep assets, although he hasn’t been showing much interest in the company.
However, on Friday, Mr. Sagi has decided to put a stop to all of it by selling his 15,193,489 shares through Brickington Trading, a holding he owns. With this, Mr. Sagi is clear out of proprietorship in the company, having sold out his 4.8% stake in it.
Though the controversy about Mr. Sagi’s negative impact on Playtech’s value has been growing for a while now, it has been revealed that all this time, the founder was trying to arrange the details of a deal, without addressing the harrowing activists.
Mr. Sagi’s interest have re-focused on a number of different things all throughout the years, gradually seeing his Playtech stake shrink, prompting complaints from investors who saw this move as irresponsible and leading to the tanking of the company’s shares and value.
Specifically, Mr. Sagi has been diversifying his own portfolio by carrying out multiple investments in Camben Market, stables Market and Camben Lock Developments back in 2014 and most recently concluding a new participating in Mobfox.
The deal was estimated at $7.5 million to be paid in cash, and Mobfox passed under the direct control of Tightline Holdings Limited, which is part of the Teddy Sagi group. Mr. Sagi hopes that Mobfox’s expertise will help his own efforts in digital advertising and e-commerce activities.
Today we completed our strategic plan for Matomy. As we communicated since I joined Matomy earlier this year, we have been focused on activities that generate high return in order to build value for our stakeholders. – Liam Galin, President and CEO of Matomy
Concluding the deal, it was Mr. Sagi himself who said that his focus had been shifting towards e-commerce and advanced technology, along with cyber security and innovation. He also said that Playtech was one of his most notable accomplishments he will forever be proud of, and wishing it success.
However, Mr. Sagi is clearly prepared to step into the future, such as it is. The acquisition of Camben was the first sign that the former Playtech owner is prepared to diversify his own portfolio and to seek alternative investment route.
With the focus shifting from iGaming to e-commerce, it’s understandable why his actions have affected the share value of the company.
There have been quite a few critics levelled against him in the past months, particularly from Jason Ader, an activist investor who has been ruthlessly calling for the outing of Mr. Sagi. Apparently, Mr. Ader has seen that his involvement in the company has been diminishing and focus shifting.
However, Mr. Sagi has left quietly and without kicking up unnecessary fuss.