DraftKings Jumps in With Major Offer for Sports Betting Company
Sports betting giant DraftKings have made a late bid for rival PointsBet which is more than the $150 million Fanatics had offered.
As both PointsBet and Fanatics were ready to move forward with the deal DraftKings decided to top the offer to $195 million for the US part of PointsBet.
Most believed that the deal was done between Florida based Fanatics and PointsBet who are looking to sell their US division as advertising and huge competition is weighing down the company with losses.
DraftKings offer makes it very attractive as the offer is without any financing and a cash offer in full up front unlike Fanatics who would have to structure the deal.
However the offer from DraftKings has not been reviewed by the Board at PointsBet and Fanatics may still be accepted, however the way DraftKings have made the offer is very appealing and it looks certain Fanatics will have to now up their offer to stay in the game.
PointsBet have scheduled an extraordinary general meeting on June 30 for a shareholder vote on the sale and Fanatics must have thought their offer was in the bag as in May PointsBet chief executive Sam Swanell said he had decided to sell to Fanatics.
PointsBet will be keen to sell to the highest bidder given their forecast for the first six months of this year their US business is set to lose $115 million and $123 million.
