Fanatics has acquired PointsBet’s US betting business for $225 million, according to the New York Post. The deal followed a bidding war between Fanatics and DraftKings. Initially, Fanatics offered $150 million in May 2023, but DraftKings countered with a $195 million bid.
The total cost of the deal was higher due to PointsBet’s $250 million advertising agreement with NBC, bringing the deal’s worth to $475 million. Fanatics increased its bid to $225 million, securing the acquisition. This move is expected to boost Fanatics’ presence in the US sports betting market.
PointsBet’s chairman Brett Paton confirmed the board’s support for the increased offer. Shareholders will benefit from a share price expected to be between AU$1.39 to AU$1.44 after the sale, as reported by the Sydney Morning Herald.
DraftKings, however, did not meet the June 27, 2023 deadline to submit an offer and couldn’t comply with the conditions of Fanatics’ initial deal, including a $21 million cash burn. Fanatics agreed to cover the cash burn.
PointsBet, with licenses in 14 US states, is a major player in the US online sports betting industry. Fanatics will use the acquisition to strengthen its market position.
The post Fanatics Buys PointsBet US for $225 Million appeared first on iGaming.org.