It’s no secret that PointsBet (OTC: PBTHF) is a takeover goal. In a brand new submitting with the Australian Securities Alternate (ASX), the gaming firm up to date buyers on plans to probably promote its North American operations.
PointsBet promoting on the Pepsi Middle in Denver. The corporate mentioned it’s in superior talks relating to the sale of its US enterprise. (Picture: The Enterprise Journals)
Earlier this month, it was reported PointsBet employed funding financial institution Moelis & Co. to discover a sale of its US and Canadian sports activities wagering enterprise. The Australia-based sportsbook operator confirmed evaluating strategic options to maximise shareholder worth, including that some associated conversations are superior.
The corporate is at the moment in dialogue with a number of events in respect of potential transactions that may contain half or all of our North America enterprise. Sure negotiations are nicely superior,” in keeping with the regulatory submitting.
PointsBet cautioned buyers that there aren’t any ensures {that a} transaction will materialize, and that it’ll stay compliant with Australian monetary market disclosure guidelines by protecting shareholders up to date on the talks.
PointsBet Mum on Potential Suitors
PointsBet has lengthy been thought-about a takeover goal, and its market capitalization of $335.70 million makes it extremely approachable for any variety of potential suitors.
PointsBet may very well be an fascinating goal as a result of it’s established within the enticing US market, regardless of its small general market share. Mix PointsBet’s present US licenses and diminutive market worth, and it may very well be an inexpensive goal for a purchaser who believes it may well develop the operator’s home footprint.
Not one of the names on the record of potential patrons and corporations who’re in superior discussions with PointsBet have been revealed within the ASX submitting. Rumors of a possible sale have been swirling, with names reminiscent of Bally’s, Fanatics, and Penn Leisure talked about as potential patrons. There’s additionally been discuss that an unidentified personal fairness firm evaluated a bid for PointsBet’s North American arm.
Even when one other suitor acquires PointsBet, Penn may benefit, as a result of the regional on line casino operator owns an fairness stake within the Aussie bookmaker.
Late final 12 months, PointsBet was in talks to promote its Australian enterprise. The corporate has since terminated these negotiations, however mentioned it stays in talks with different third events that expressed curiosity in buying its Aussie unit.
PointsBet Sources of Attract
Whereas PointsBet has but to succeed in profitability in North America, and its share of an ultra-competitive regulated sports activities betting market is scant, there are factors of attraction for bidders.
The corporate holds a license in Ontario, Canada and is dwell in Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia, and West Virginia.
Moreover, it sports activities topline development and had $251.7 million in money as of the tip of March, in keeping with the regulatory doc.
