Board Recommends MIXI Offer After Rejecting Betr Bid

PointsBet has shut down a takeover bid from U.S.-based Betr, choosing instead to back a deal from Japanese entertainment company MIXI. The board made its position clear, saying the offer from Betr did not meet expectations on value, stability, or long-term fit.

Good to know

• MIXI’s all-cash deal values PointsBet at $402 million and offers $1.20 per share.
• PointsBet said Betr’s proposal relied too much on unstable VIP earnings.
• MIXI already has gaming approval in Ontario, while Betr is still waiting.

MIXI’s proposal comes through its subsidiary, MIXI Australia, and includes a cash payment per share, offering certainty that Betr’s offer could not match. That was a key factor for PointsBet, which cited concerns about the liquidity of Betr’s shares and the risks of relying on them for shareholder value.

On the other hand, Betr’s offer would have swapped 3.81 of its shares for each PointsBet share, claiming a value of AU$1.22 per share based on its stock price. The pitch also included promised synergies of $44.9 million, but PointsBet pushed back on those figures, saying the estimates were “materially overstated.”

Beyond the numbers, PointsBet criticized Betr’s business model. The company said half of Betr’s total win came from just 20 VIP customers. PointsBet flagged that as a warning sign, mentioning long-term risk, regulatory exposure, and unpredictable revenue.

Horse racing was another sticking point. Betr relies on it for 85% of its net win, and PointsBet expressed doubts that this left enough room for growth or product diversity.

Timing also played a role. MIXI has already completed the necessary regulatory work in Ontario, while Betr still faces uncertainties in that market. For PointsBet, that lack of clarity was another strike against the American operator.

MIXI’s offer does require at least 50.1% shareholder approval, but the PointsBet board has already made its position clear.

“The PointsBet Directors unanimously recommend that PointsBet shareholders accept the MIXI Takeover Offer, in the absence of a superior proposal,” the company said.

At this point, it is up to Betr to decide if it will return with a revised offer. However, MIXI seems to have the advantage, offering not just more stability, but also quicker execution.

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