DraftKings makes shock $195M Bid for PointsBet U.S
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It would seem that the Fanatics acquisition of PointsBet’s U.S. operations is not as cut and dried as everybody thought. In a surprising twist, DraftKings has submitted a $195 million bid for PointsBet.
This bid is 30% higher than the offer placed by Fanatics and could throw a spanner in the plans of Fanatics, who had been hoping to leverage PointsBet’s market access to expand to other states. PointsBet’s Australia-based stock nosedived by over 20% in May after news broke of the potential deal with Fanatics.
DraftKings Bid Details
This new offer from DraftKings would see the market-leading sportsbook take over the sports betting properties of PointsBet in the country. In the states that PointsBet currently operates in, the PointsBet sportsbook app would likely see a re-brand to become the DraftKings app in those markets.
Jason Robins, DraftKings’ Chief Executive Officer, and Co-founder said in addition to continually looking to “operating more efficiently and driving substantial organic revenue growth” in the US, they will also look to “capitalize on compelling opportunities at attractive valuations”. The company clearly believes that purchasing PointsBet’s American operations is an attractive valuation. Robins went on to state that he feels DraftKings is in a strong position to submit a better proposal due to their scale.
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DraftKings is undoubtedly an established betting operator and provides one of the best sports betting sites in the US. By purchasing the PointsBet operation, it would only serve to enhance the presence of DraftKings in more regulated markets. Previous reports indicated that Fanatics was targeting a launch in New York by the beginning of the new NFL season in September. The PointsBet shareholders will vote on the Fanatics deal on June 30.
Who will PointsBet choose?
PointsBet is currently considering all options. The operator has made no secret of the fact it has been looking to offload its U.S. operation for a while. The company will accept the most lucrative deal that benefits all shareholders in the short, medium, and long term.
The proposal from DraftKings does not constitute an official binding or firm commitment from the party. It just initiates negotiations between the companies as they seek to provide the best solution for all. There is certainly no total agreement between DraftKings and PointsBet at the current time.
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