Betting News

PointsBet Holdings is contemplating DraftKings’ acquisition offer

PointsBet Holdings came out with its declaration of the fact that it is seriously deliberating on the proposal put forward by DraftKings in terms of carrying out a complete acquisition of the company. Prior to this, it was Fanatics Betting and Gaming (FBG) that had sent out a similar kind of flier. However, the point to be noted in this situation is the aspect of DraftKings making a bid to the tune of $195 million against the offer that came from the Fanatics camp, which amounts to $150 million. 

Another plus point that seems to be going in favor of PointsBet Holdings is its online sportsbook, while in the case of Fanatics, the company is not into running an online sportsbook. As per information shared by reliable sources at PointsBet Holdings, the company is certainly inclined towards the proposal extended by DraftKings.

However, despite the fact that, at the present moment, the scales are tipped heavily in favor of DraftKing, there seems to be a hitch. Regarding the proposal they offered, there is no mention of any kind of binding clause. This is a factor to be seriously considered, as it speaks of an area of non-assurance. To bring about further clarity on the matter, a meeting has been arranged between the two parties towards the end of June 2023.

PointsBet, on the other hand, is a corporate bookmarker that’s listed on the Australian Stock Exchange and does business in Australia, the US, Canada, and Ireland. The business is searching for financing to cover the cash outflow of its American commercial branch. For FBG, a cash burn of $21 million was the maximum allowed. 

With FanDuel Sportsbook and BetMGM Sportsbook as its main rivals, DraftKing is among the largest businesses operating in the U.S. online sports betting market. Since the purchase price and other financial commitments total more than $500 million, Fanatics CEO Michael Rubin is skeptical of the DraftKings proposal, which seems like a desperate attempt to prevent Fanatics and PointsBet from closing the deal. 

David Bright

David Bright joined Times of Casino as a news writer focused on the casino industry. He holds a bachelor degree in Economics and Accounting and currently contributing in-depth news articles. David writes on the casinos, gambling legislation, poker, and much more.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button