On 16 June, PointsBet received an unsolicited non-binding indicative proposal from DraftKings to purchase its US division for $195.0m (£152.0m/€178.2m).
PointsBet will assess the proposal from DraftKings, which involves a debt-free, cash-free acquisition with no financing conditions.
PointsBet believes that the DraftKings proposal could be superior to the offer made by Fanatics last month.
PointsBet will engage with DraftKings to discuss their proposals, although it’s important to note that the DraftKings proposal is not a binding offer.
The company will continue to recommend shareholder approval of the agreed sale to Fanatics, even as it considers the DraftKings proposal.
A vote on the Fanatics deal is scheduled for 30 June at an Extraordinary General Meeting.
PointsBet clarifies that DraftKings acted in good faith and addresses allegations suggesting their proposal aimed to disrupt the process with Fanatics.
PointsBet already has an agreement in place to sell its division to Fanatics for $150.0m, granting access to 12 states including New York, New Jersey, Pennsylvania, and Michigan.
If PointsBet opts for the DraftKings proposal, Fanatics would need to explore alternative routes to these and other markets.
PointsBet expects due diligence from DraftKings and requests a clean team protocol to be agreed upon prior to starting the process.
PointsBet also seeks written confirmation of DraftKings’ commitment to funding the cash burn of the US.
If the acquisition proceeds, PointsBet holds DraftKings accountable for obtaining antitrust clearances.
In April, PointsBet confirmed talks with multiple parties for the sale of its North American arm, after terminating discussions to sell its Australian business.
PointsBet reported a 39% increase in revenue to AU$106.6m for Q1, driven by expansion in North America and rapid growth in its Canadian business.
The company expects to incur an EBITDA loss of $77.0m to $82.0m for H2 FY3.
Despite these challenges, PointsBet aims to reduce costs and move towards profitability.
