PointsBet ready to enter negotiations with DraftKings
After assessing DraftKings’ offer to purchase its United States division for nearly 200 million dollars, PointsBet has determined that the new proposal could deliver greater value to the company and its shareholders. This led the operator to decide to engage with DraftKings on the new offer, requesting both parties to carry out appropriate due diligence for the proposal.
The request was made through a letter to DraftKings’ CEO and Chair, Jason Robins, in which PointsBet’s non-executive Chair, Brett Paton, informed the former that the company’s board is ready to enter talks about the offer. PointsBet also requested that both parties prepare draft documents for the transaction before the 28th of June, a few days before its general meeting where investors will have the opportunity to vote on the nearly finalized transaction with Fanatics.
Due to the offer’s non-binding and undocumented nature, PointsBet still recommends its shareholders vote in favor of the Fanatics agreement. The contract will involve a 150 million dollar transaction and will also include a licensing agreement, allowing Fanatics to utilize PointsBet’s gambling platforms to take over the latter’s US business without much downtime.