DraftKings Tops Fanatics Bid with $195M Offer to Buy PointsBet
DraftKings, the online sports entertainment and gaming company, has announced it has made an offer to buy PointsBet, the gaming operator, for $195 million, which is 30% higher than the other recent offer of $150 million from Fanatics.
DraftKings owner, Jason Robins, indicated the company had sent a letter outlining details of the company’s proposal to PointsBet's leadership team. This follows the lower offer from Fanatics to buy PointsBet, which seemed to be agreed by both parties.
Under the terms of the offer from Fanatics to PointsBet, there is a provision that allows for a higher bid to be tabled, and DraftKings have taken advantage of this with their counter bid.
Robins believes the acquisition would lead to increased synergies between both companies and offer customers advantages such as increased bet types. Also, DraftKings would like to bring more of the sports technology that PointsBet supplies into an in-house environment.
DraftKings has given details of the financial impact it estimates the acquisition would have, stating it should not affect the forecast of adjusted EBITDA being positive for 2024 while increasing the adjusted EBITDA figure for 2025.
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, 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.
Speaking for the Fanatics, Michael Rubin, the CEO, said. “It’s a move to delay our ability to enter the market. I guess they are more concerned about us than I would have thought.”