Key things
- DraftKings is bidding higher than Fanatics for American PointsBet assets.
- The $195 million bid tops Fanatics’ bid by $45 million.
- PointsBet said it will consider the deal as shareholders vote on the deal from Fanatics this month.
A bidding war is underway for part of Australian sports betting website PointsBet.
Boston-based online sports entertainment and gambling company DraftKings (DKNG) offered $195 million in cash for PointsBet’s US assets. That’s $45 million more than rival Fanatics agreed to pay last month.
DraftKings CEO Jason Robins wrote in a letter to PointsBet that its proposal is superior to Fanatics’ proposal “both because of the value it would bring to your shareholders and our anticipated ability to complete the proposed transaction more quickly.”
PointsBet said it had received an unsolicited offer and that the directors, together with their advisers, were considering it. But it noted that “subject to the outcome” of its review, the board “continues to recommend that shareholders vote in favor” of the Fanatics offer.
The company’s investors are expected to vote at an extraordinary general meeting to be held on June 30.
Shares of DraftKings fell 1.3% on Friday after the news.
YCharts