PointsBet's board unanimously recommended sale to Fanatics over late DraftKings offer
PointsBet is moving forward with the sale of its U.S. operations to Fanatics, the company announced Wednesday after a late and contentious offer by DraftKings to make the acquisition.
The sale was originally agreed to in May at a price of $150 million, but DraftKings came in with a non-binding $195 million offer just two weeks before shareholders were set to vote. Fanatics increased its offer by 50 percent to $225 million, which PointsBet’s board unanimously recommended shareholders vote in favor of at the June 30 meeting.
The board determined Fanatics’ offer was superior in both price and certainty of being completed in a timely matter, as DraftKings was unable to finalize a binding offer by Tuesday.
DraftKings said in a statement it was no longer pursuing the acquisition.
Whether DraftKings’ interest was ever real remains a question after Fanatics CEO Michael Rubin called DraftKings’ proposal a desperate move to slow down the completion of the deal.
A New York Post report suggested an ulterior motive, citing a secret near-merger between DraftKings and Fanatics two years ago that Rubin pulled out of. According to the report, DraftKings CEO Jason Robins has held a grudge ever since.
“To suggest that there is an ulterior motive that is personal and not business related is irresponsible and not grounded in reality,” a DraftKings spokesperson said of the proposal.