OneUps Archives - Keno Wizard https://kenowizard.com/tag/oneups/ The Ultimate Keno Destination for Odds, Tips & Tricks Fri, 16 Jun 2023 15:43:41 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 https://i0.wp.com/kenowizard.com/wp-content/uploads/2023/02/cropped-keno-wizard-icon.png?fit=32%2C32&ssl=1 OneUps Archives - Keno Wizard https://kenowizard.com/tag/oneups/ 32 32 230792155 DraftKings One-Ups Fanatics in a Bid to Purchase PointsBet USA https://kenowizard.com/2023/06/16/draftkings-one-ups-fanatics-in-a-bid-to-purchase-pointsbet-usa/ https://kenowizard.com/2023/06/16/draftkings-one-ups-fanatics-in-a-bid-to-purchase-pointsbet-usa/#respond Fri, 16 Jun 2023 15:43:41 +0000 https://kenowizard.com/2023/06/16/draftkings-one-ups-fanatics-in-a-bid-to-purchase-pointsbet-usa/ Interest in PointsBet’s US division continues to mount as multiple parties expressed interest in acquiring the gaming entertainment company’s regional assets. DraftKings’ recent proposal is substantially higher than the competing offer by Fanatics, increasing its appeal to shareholders. A successful acquisition would bolster DraftKings’ position in the rapidly expanding US sports betting market. The New [...]

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Interest in PointsBet’s US division continues to mount as multiple parties expressed interest in acquiring the gaming entertainment company’s regional assets. DraftKings’ recent proposal is substantially higher than the competing offer by Fanatics, increasing its appeal to shareholders. A successful acquisition would bolster DraftKings’ position in the rapidly expanding US sports betting market.

The New Proposition Represents a Last-Minute Upset

Australian-based sports betting operator PointsBet entered the US market in 2018 and has experienced significant growth and success. However, the company is facing substantial financial pressures. Despite rising revenues, plummeting EBITDA and an unexpected cash outflow hurt the operator’s long-term profitability, motivating the decision to sell its US-facing arm.

Several companies have already expressed interest in acquiring PointsBet USA. In May, global digital sports platform Fanatics offered $150 million. The deal seemed all but certain, as the two companies released a joint statement claiming the agreement would soon become official. However, the most recent updates cast doubts on these assertions as DraftKings leaped in at the last moment with a competing offer.

DraftKings clearly intends to snatch away the desirable US business, offering $195 million for PointsBet USA’s assets. The proposal threatens to end the already-agreed Fanatics deal, significantly impacting the other operator’s plans. PointsBet’s board of directors announced they would evaluate the new offer, noting that timely execution and regulatory approval remained vital factors.

An Additional $45 Million Are Difficult to Refuse

The proposed acquisition holds several strategic benefits for both companies. DraftKings will significantly expand its market presence and enhance its technological capabilities, potentially offering customers a broader range of betting options and improved features. The deal will also give the operator access to PointsBet’s established customer base, giving it an edge over other high-profile players in an increasingly competitive industry.

All other things being equal, PointsBet seems to have little reason not to go with the more lucrative deal. The extra funds will contribute to the company’s cash reserves, allowing it to focus on its core operations and growth strategies in other markets, like Australia. Divesting its US division should also reduce expenses, contributing to a more efficient and streamlined business.

Although DraftKings’ acquisition proposal came out of the blue, it presents PointsBet with a significant dilemma. The company can either abide by its previous agreement with Fanatics and settle for the lower sum or go with DraftKings and risk alienating the other company. Given shareholder returns usually take priority in such matters, gravitating toward the more lucrative offer is a distinct possibility.

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