DraftKings throws wrench in Fanatics' purchase of PointsBet with competitive rival offer
PointsBet might have to pump the brakes on the sell of its U.S. business to Fanatics. There’s now a rival bid on the table.
DraftKings has submitted an offer of $195 million for the sports betting operation, representing a 30% increase over Fanatics’ offer of $150 million, giving PointsBet something to think about.
“While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalize on compelling opportunities at attractive valuations, as is the case with PointsBet’s U.S. business,” DraftKings CEO and co-founder Jason Robins said in a release. “We believe DraftKings is uniquely positioned to submit this superior proposal due to our scale and corresponding ability to generate meaningful synergies from the acquisition.”
A month ago, Fanatics made a $150 million offer to acquire PointsBet's U.S. operations.
Now, DraftKings has swooped in with a last-minute offer for $195 million — a move seemingly made to block Fanatics. pic.twitter.com/bvlUI8HCpC
— Front Office Sports (@FOS) June 16, 2023
In a release responding to the offer, PointsBet said its directors are “committed to acting in the best interest of all Shareholders and are considering the DraftKings Proposal alongside its advisers.”
PointsBet’s sale to Fanatics was subject to shareholder approval at a meeting scheduled for June 30. DraftKings’ bid comes in with just enough time for directors to evaluate and change course if they so choose. An acquisition for DraftKings would expand what’s already one of the two largest online sportsbook companies in the U.S, and it would be a setback for Fanatics’ upstart sportsbook business.