Fanatics beats DraftKings’ offer for PointsBet US with new $225m bid
The sportsbook was originally outbid by DraftKings for PointsBet’s US Operations, but has now raised the stakes with a higher offer.
PointsBet, the seventh-largest sportsbook in the US, must feel on top of the world since winning the attention of competing bidders Fanatics and DraftKings for its US operations.
The Australian-based company announced a plan to sell its US operations with investment bank Moelis & Company in April. Less than a month later, apparel-turned-sportsbook company, Fanatics, bid $150m.
The excitement continued as the terms of this sale dictated that PointsBet was able to accept a ‘superior offer,’ should one arise – and the US’ second-highest grossing sportsbook, DraftKings, made that offer of $195m on June 16th.
Yesterday, PointsBet requested a halt of trading, and now Fanatics is back in the game with a new bid of $225m. Since then, the PointsBet Board has unanimously recommended Fanatics’ improved proposal. DraftKings had not finalized a binding offer by close-of-play on June 27th in Melbourne time, which influenced the Board’s recommendation.
PointsBet Chairman Brett Paton said, “The improved proposal delivers PointsBet shareholders a 50% or US$75m increase to the acquisition price originally agreed with Fanatics Betting and Gaming.
“Our US team will have a strong future as part of the Fanatics Betting and Gaming group and PointsBet will build on the opportunities in Australia and Canada underpinned by a strong balance sheet.”
Shareholders at PointsBet were scheduled to vote on the transaction at an Extraordinary General Meeting planned for June 30th.
DraftKings, however, has since released a statement on June 28th saying, “The company is no longer pursuing the acquisition of the US business of PointsBet. The company thanks PointsBet for their time and access over recent weeks.”
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