DraftKings Bids $195 Million for PointsBet’s US Operations

DraftKings, in a move to expand its online sports-betting presence, has made an offer to acquire PointsBet’s US operations for $195 million, triggering a potential showdown with Fanatics, a sports-merchandise company also interested in the online sports-betting assets.

Last month, PointsBet announced a deal to sell its US operations to Fanatics for $150 million. However, DraftKings has now presented a non-binding offer to PointsBet’s board, who are currently reviewing the proposal alongside their advisors.

While the board evaluates DraftKings’ offer, PointsBet has advised its shareholders to proceed with voting in favor of the Fanatics deal, highlighting that the offer from DraftKings is not yet binding.

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In a letter addressed to PointsBet’s Chairman and Chief Executive, DraftKings’ CEO emphasized the potential for a faster closing of the deal compared to Fanatics.

Furthermore, DraftKings’ Chief Financial Officer highlighted the strategic advantages of the acquisition, stating that it would enable the company to introduce innovative betting options and strengthen its in-house sports-betting technology.

Following the announcement, DraftKings’ stock experienced a slight decline of around 1% in midday trading on Friday, settling at $24.64.

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In response, Fanatics’ CEO expressed skepticism regarding DraftKings’ offer, describing it as a desperate attempt to impede the completion of the Fanatics-PointsBet deal.

Analysts note that the proposed acquisition would mark a significant entry into the US sports-betting market for Fanatics, granting the company access to sports betting in at least 15 states, with most of them accessible by the start of the National Football League season.

DraftKings’ CEO, in his letter, highlighted that their offer is 30% higher than the offer made by Fanatics, and expressed confidence in reaching a definitive agreement within approximately three weeks, should PointsBet choose to proceed with the deal.