Australian online bookmaker PointsBet has announced that Fanatics has submitted a revised $225 million offer, representing a 50% increase over its original proposal to acquire the company’s US business operations.
Fanatics latest offer follows a $195 million bid from DraftKings which the PointsBet board had recommended shareholders vote in favor of. However, Fanatics’ updated bid has since been “unanimously recommended” by the PointsBet board, according to a statement released via the PointsBet website.
PointsBet had set an initial deadline of Tuesday June 27th for any bids for its US business operations. With Fanatics submitting its bid just ahead of the deadline, DraftKings had no time to finalize a binding offer.
According to the PointsBet statement, the new bid is “superior in terms of both pricing and certainty of being able to complete on a timely basis.”
PointsBet Chairman Brett Paton said:
“The improved proposal delivers PointsBet shareholders a 50% or US$75 million increase to the acquisition price originally agreed with Fanatics Betting and Gaming. Following the receipt of a non-binding indicative offer for our US Business from DraftKings on 16 June 2023, the PointsBet team entered negotiations with both parties. The Board unanimously supports the improved proposal from Fanatics Betting and Gaming, which provides a superior price plus certainty.
Fanatics Betting and Gaming conducted their diligence process and negotiations in a highly professional manner at all times. The offer to “front end” the additional consideration is an element which we regarded as a welcome and significant benefit to our shareholders.
Subject to shareholder and regulatory approvals, 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.”
The latest Fanatics bid will see payments made in two stages, $175 million at closing (up from $100 million in the original offer), and another $50 million due in February 2024.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.
