PointsBet (OTC: PBTHF) introduced buyers overwhelmingly voted in favor of $225 million all-cash takeover provide for its US operations from Fanatics.
Fanatics CEO Michael Rubin. The corporate is formally buying PointsBet US. (Picture: Yahoo Sports activities)
On the Australian firm extraordinary group assembly (EGM) earlier as we speak, 99.16% of PointsBet shareholders voted for the bid, which privately held Fanatics revised earlier this week, tacking on 50% to its authentic provide.
The vote caps a tumultuous two weeks that noticed DraftKings (NASDAQ: DKNG) enter the fray for PointsBet US, bidding $195 million in money for the enterprise. Whereas DraftKings made a proposal that was initially greater than what was proposed by Fanatics and PointsBet introduced it could interact in talks with DraftKings, that firm by no means made a binding proposal and Fanatics in the end boosted its bid for PointsBet US.
Some analysts and sports activities wagering trade observers imagine DraftKings was appearing as greater than an irritant to Fanatics as a result of rumored acrimony between DraftKings CEO Jason Robins and Michael Rubin, his Fanatics counterpart.
‘Pivotal Second’ for Fanatics
After being tied to sports activities betting trade consolidation rumors for an prolonged time frame and by no means hanging deal, Fanatics is on the heart of one of many gaming sector’s most noteworthy 2023 transactions.
This can be a pivotal second for Fanatics Betting and Gaming that may speed up our development within the authorized on-line sports activities betting, advance deposit wagering and iGaming markets in america. Pending regulatory approvals within the numerous states wherein PointsBet operates, we can have extra particulars to share within the coming weeks on how the acquisition of PointsBet US companies will deliver to life our distinctive imaginative and prescient for Fanatics Betting and Gaming,” in response to an announcement from the Florida-based firm.
Whereas PointsBet (and others) considerably lag FanDuel and DraftKings when it comes to US on-line sports activities wagering market share, the acquisition might be important in serving to Fanatics notice its objective of being reside with cell betting in at the very least a dozen states by the beginning of soccer season.
PointsBet Chairman Brett Paton famous PointsBet US is one among simply seven operators on this nation which have market share in extra of 1%.
Proper Time for PointsBet to Depart US
By promoting its US enterprise , PointsBet can hone its give attention to its Australian and Canadian operations and different alternatives. Paton acknowledged it had change into too costly for the corporate to compete within the US and that persevering with to take action would have required additional dilutive capital raises.
“The brief reply is that regardless of having some strategic success, the prices of competing towards the most important firms of their sort on this planet meant the enterprise wouldn’t be money flow-positive within the close to time period. Persevering with to function the US enterprise would require important capital and additional capital raises,” he instructed buyers.
Paton additionally acknowledged PointsBet US was bought at a loss. He didn’t elaborate on that time and famous the operator isn’t contemplating a sale of its Australian unit at the moment.
