In a decisive play, sports platform company Fanatics has escalated its acquisition bid for PointsBet’s US operations. The company, not to be outdone, raised its initial offer by an impressive 50% to $225 million, effectively countering DraftKing’s earlier $195 million non-binding proposal.
Fanatics’ Improved Proposal Receives PointsBet Board Approval
PointsBet’s Board members are set to vote on the augmented proposal this Thursday. Brett Paton, PointsBet Chairman, affirmed the board’s unanimous support for the deal, stating, “The Board unanimously supports the improved proposal from Fanatics Betting and Gaming, which provides a superior price plus certainty.” An earlier deadline for DraftKings to deliver a binding offer passed uneventfully, leaving the field open for Fanatics’ bold strategy.
Potential Gains from PointsBet Acquisition
While the acquisition might not be revolutionary for Fanatics, it certainly carries strategic significance. If approved by shareholders and regulators, it will give Fanatics a substantial boost in its US presence, with access to the markets in the 15 states where PointsBet, currently the seventh-largest US sports betting operator, functions.
Brett Paton expressed optimism about the potential deal, anticipating that “Our U.S. team will have a strong future as part of the Fanatics Betting and Gaming group.”
On the other hand, Fanatics CEO Michael Rubin was highly sceptical of DraftKing’s earlier offer, viewing it as a defensive manoeuvre aimed at slowing down Fanatics’ entry into the market. “It’s a move to delay our ability to enter the market,” Rubin said. “I guess they are more concerned about us than I would have thought.”
Fanatics and DraftKings have not officially commented on the recent developments.