SPORTS BETTING
US – DraftKings submits superior offer for PointsBet
By Phil - 19 June 2023
DraftKings has delivered a letter to both the Non-Executive Chairman and Chief Executive Officer of PointsBet Holdings setting forth an indicative offer to acquire PointsBet’s US business in an all-cash transaction with a purchase price of $195m.
DraftKings’ proposal represents a 30 per cent premium to PointsBet’s existing agreement to sell its US business and is subject to the conditions described in the letter.
“While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalize on compelling opportunities at attractive valuations, as is the case with PointsBet’s US business,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “We believe DraftKings is uniquely positioned to submit this superior proposal due to our scale and corresponding ability to generate meaningful synergies from the acquisition.”
“We expect this transaction to increase our Adjusted EBITDA potential in 2025 and beyond and not impact our expectations of achieving positive Adjusted EBITDA in 2024,” said Jason Park, DraftKings’ Chief Financial Officer. “We are excited about the potential synergies available by acquiring PointsBet’s U.S. business, including offering our customers interesting new bet types and accelerating our roadmap of bringing in-house more of our mobile sports betting technology.”
