The potential , Fanatics, and PointsBet sale has taken yet another turn, as the directors of PointsBet have considered the DraftKings proposal and determined it could be expected to lead to a Superior Proposal.
The board of directors on the potential sale of the company s U.S. assets this morning, noting that the board has considered the DraftKings proposal and acting in good faith, have determined (after consultation with the company s financial and legal advisors) that the DraftKings Proposal could reasonably be expected to lead to a Superior Proposal.
PointsBet, with assistance of its financial and legal advisors, announced it will now engage with DraftKings on its proposal to purchase the U.S. assets of the company for $195 million.
Shareholder Voter Scheduled for June 30
The board announced that it is still recommending that shareholders vote in favor of the Fanatics proposal of $150 million to purchase the U.S. assets of the company while it considers the DraftKings offer.
A shareholder vote is scheduled for Friday, June 30.
DraftKings Inc. of $195 million in cash to acquire the U.S. assets of PointsBet on June 15, topping an earlier proposal of $150 million from Fanatics to acquire the business. DraftKings’ proposal is a 30% increase from the Fanatics bid. While the PointsBet board had agreed to a sale to Fanatics, the acquisition still depended on the June 30 shareholder meeting vote.
DraftKings delivered a letter to both Brett Paton, non-executive chairman, and Sam Swanell, chief executive officer, of PointsBet indicating an offer to acquire the U.S. assets of the business.
In the letter, DraftKings’ Chief Executive Officer Jason Robins describes his company’s bid as a “superior proposal” which delivers a “significant premium” to the Fanatics’ proposal.
If Fanatics is outmaneuvered for the company, it will delay market access into several states for its sports betting operation. PointsBet has U.S. market access in 14 states, including New York, New Jersey, Michigan, and Pennsylvania. Without the purchase will likely be unable to enter the New York and Michigan sports betting markets, and could find difficulty in entering New Jersey as well.
Fanatics currently has licenses to operate in Massachusetts, Maryland, Ohio, and Tennessee.
Fanatics CEO Michael Rubin told CNBC that he’s skeptical of the proposed DraftKings bid to purchase the company.
“It’s a move to delay our ability to enter the market,” Rubin said. “I guess they are more concerned about us than I would have thought.”
Next Steps for Sale
Paton, the non-executive chairman of PointsBet, provided Robins with a letter today outlining the company s next few steps regarding the submitted bids. Paton confirmed the interest in the bid and wrote that the board is prepared to engage with DraftKings.
PointsBet officially requested that any due-diligence performed by DraftKings is done so with a clean team.
This will require agreement of a clean team protocol prior to the commencement of due diligence. In the interest of time, we suggest that DraftKings provides a clean team protocol that best works for your team, Paton wrote.
The due-diligence process, Paton noted, will have to be completed no later than 6 p.m. Tuesday, June 27, Melbourne time.
