Fanatics founder and CEO Michael Rubin at his office in New York.
The Washington Post | Getty Images
Fanatics is taking bold steps as it seeks to acquire PointsBet’s U.S. business.
The sports platform company has increased its offering by 50%, now totaling $225 million, in an effort to outbid DraftKings. Earlier this month, DraftKings made a non-binding offer of $195 million.
The new offer from Fanatics will be put to a formal vote by PointsBet shareholders on Thursday night.
“The Board unanimously supports the improved proposal from Fanatics Betting and Gaming, as it offers a higher price and greater certainty,” said PointsBet Chairman Brett Paton in a statement.
PointsBet set a deadline of 6 p.m. on Tuesday (Melbourne time) for DraftKings to make a binding offer, but DraftKings failed to do so.
DraftKings CEO Jason Robins had previously stated in an interview with CNBC that while the deal wouldn’t have a transformative impact on DraftKings, it would allow the company to increase its market share.
If formally approved by PointsBet shareholders and regulators, the deal would give Fanatics a significant presence in the 15 U.S. states where PointsBet operates. PointsBet currently ranks as the seventh-largest U.S. sports betting operator.
“Our U.S. team will thrive as part of the Fanatics Betting and Gaming group, while PointsBet will seize opportunities in Australia and Canada supported by a strong financial position,” added Paton.
Fanatics CEO Michael Rubin expressed skepticism towards DraftKings’ proposed offer, viewing it as an attempt to hinder Fanatics’ entry into the market.
“Their move is a tactic to delay our market entry,” Rubin commented. “I suppose they are more concerned about us than I would have expected.”
Both DraftKings and Fanatics declined to provide comments on the latest news.
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