PointsBet recently announced that it is in discussions to sell its Australian business to NTD Pty Limited, a venture involving media conglomerate News Corp, investment fund Tekkorp Capital, and industry executive Matt Tripp. NTD operates the Australia-facing Betr brand, which is unrelated to the US-based Betr operator. The potential transaction is being evaluated in the context of PointsBet’s global strategy and opportunities. News Corp, owned by the Murdoch family, is among the parties involved in Ntd Pty Limited.
The discussions between PointsBet and NTD are in the early stages and incomplete. Therefore, there is no certainty that a binding transaction will occur. PointsBet will provide updates to the market as per its continuous disclosure obligations.
The Australian Securities Exchange (ASX) raised questions about whether PointsBet should have disclosed these talks before media reports. PointsBet believes that the talks wouldn’t have a material effect on its securities since they are preliminary and incomplete in nature. However, due to an internal administrative error, the release of the announcement had a material impact on PointsBet’s share price. The company has reviewed its internal procedures to prevent such errors in the future.
PointsBet operates in the United States, Canada, and Australia. In the last quarter, Australia accounted for the highest market revenue of AU$47.5m (excluding promotions). The US generated AU$29.5m, Canada contributed AU$1.7m, and B2B operations brought in AU$2.7m.
