- Fanatics increased its offer from $150 million to $225 million to acquire PointsBet’s U.S. assets.
- The PointsBet board unanimously approved and recommended the proposal and will vote on it Thursday night.
- The deal would give Fanatics access to 15 U.S. states that it operates in.
Fanatics has raised the stakes as it looks to acquire PointsBet’s U.S. business.
The sports platform company increased its offering by 50% to $225 million in an effort to outbid DraftKings, which made a non-binding offer of $195 million earlier this month.
PointsBet shareholders will formally vote on the new offer Thursday night.
“The Board unanimously supports the improved proposal from Fanatics Betting and Gaming, which provides a superior price plus certainty,” PointsBet Chairman Brett Paton said in a statement.
PointsBet gave DraftKings until 6 p.m. on Tuesday (Melbourne time) to make a binding offer and they failed to do so.
DraftKings CEO Jason Robins previously told CNBC that while the deal wouldn’t have been transformative for DraftKings, it would allow the company to grow market share.
If the deal is formally approved by PointsBet shareholders and regulators, it will give Fanatics much needed U.S. real estate in the 15 U.S. states where they operate. PointsBet is the seventh-largest U.S. sports betting operator.
“Our U.S. team will have a strong future as part of the Fanatics Betting and Gaming group and PointsBet will build on the opportunities in Australia and Canada underpinned by a strong balance sheet,” Paton said.
Fanatics CEO Michael Rubin told CNBC after the DraftKings announcement that he was highly skeptical of their proposed offer, which he viewed as DraftKings attempting to slow Fanatics down.
“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.”
DraftKings and Fanatics both declined to comment on the news.
Source: Business - cnbc.com