{"id":273460,"date":"2023-05-15T01:34:17","date_gmt":"2023-05-15T06:34:17","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=273460"},"modified":"2023-05-15T17:45:12","modified_gmt":"2023-05-15T22:45:12","slug":"fanatics-buying-pointsbet-usa-for-150-million-in-cash","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/","title":{"rendered":"Fanatics Finally Makes Deal, Grabs PointsBet for $150 Million"},"content":{"rendered":"

Following months of speculation, PointsBet (OTC: PBTHF) is poised to sell its US operations to Fanatics for $150 million in cash.<\/p>\n

\"Fanatics
Fanatics founder Michael Rubin at an event in 2021. The company is acquiring PointsBet USA for $150 million in cash. (Image: Getty Images)<\/figcaption><\/figure>\n

The companies announced the transaction in a joint statement released Sunday. That confirmation arrived just weeks after it was reported PointsBet hired<\/a> investment bank Moelis & Co. to explore a sale of its US and Canadian sports wagering business.<\/p>\n

Fanatics and PointsBet are excited to enter into an agreement for Fanatics Betting and Gaming to acquire PointsBet\u2019s US business,\u201d according to the press release. \u201cWhile there are still several steps in the process to complete the acquisition, both parties are confident in the outcome. Fanatics Betting and Gaming and PointsBet will provide further details of the proposed deal and timely updates in the coming weeks.\u201d<\/p><\/blockquote>\n

Sydney-listed PointsBet is slated to hold a shareholder vote on the deal in June. Only the target\u2019s US business is part of the transaction with Fanatics. PointsBet\u2019s Aussie operations have also been the subject of rampant takeover chatter. The company is retaining its Canadian sports wagering unit.<\/p>\n

PointsBet Likely Needs Deal to Find Finish Line<\/h2>\n

PointsBet has long been considered a takeover target<\/a>. In addition to closely held Fanatics, Bally\u2019s (NYSE: BALY) and Penn Entertainment (NASDAQ: PENN), the latter owning an equity stake in the target, were considered potential suitors.<\/p>\n

\n

The proposed acquisition arrived none too soon for PointsBet. That’s because the operator isn\u2019t profitable in the US and by its own admission, doesn\u2019t expect that its online sports wagering efforts in this country will be cash flow positive over the near term. Owing to its dwindling cash position in the US, PointsBet may not be able to adequately finance its operations here. It could be forced to sell shares at a steep discount to current market prices if the transaction with Fanatics collapses.<\/p>\n<\/div>\n

\u201cPointsBet\u2019s current corporate cash balance is insufficient to fund the US Business through to profitability, and as such, should the Proposed Transaction not proceed, the Company would need to raise additional capital in the near term,\u201d according to the Australian firm.<\/p>\n

NBCUniversal, which took a 4.9% equity stake<\/a> in PointsBet in 2020, will be compensated, and related financial commitments will be transferred to Fanatics Betting & Gaming.<\/strong><\/p>\n

\u201cNBCUniversal has also released PointsBet Holdings Limited from its guarantee obligations under its Media Services Agreement from final Completion, and has irrevocably waived its right to exercise the equity options previously issued. These options have been terminated today,\u201d added PointsBet.<\/p>\n

Fanatics Finally Makes a Deal<\/h2>\n

While PointsBet has long been rumored to be a target, sports betting industry observers have been waiting on Fanatics to make a deal for just as long, if not longer.<\/p>\n

\n

The company, valued at $31 billion in private markets last December, has been tied to a slew<\/a> of takeover speculation. Those rumors involved BetParx, Tipico, Rush Street Interactive (NYSE: RSI), Churchill Downs’ (NASDAQ: CHDN) TwinSpires Racing unit, Swedish gaming giant Betsson, and WynnBet, among others.<\/p>\n<\/div>\n

With PointsBet USA, Fanatics gains a cost-effective avenue for jump-starting its sports wagering division and could pave the way toward meeting its goal of being live in at least a dozen states by the start of the 2023 football season.<\/p>\n","protected":false},"excerpt":{"rendered":"

Following months of speculation, PointsBet (OTC: PBTHF) is poised to sell its US operations to Fanatics for $150 million in cash. The companies announced the transaction in a joint statement released Sunday. That confirmation arrived just weeks after it was reported PointsBet hired investment bank Moelis & Co. to explore a sale of its US […]<\/p>\n","protected":false},"author":46,"featured_media":208530,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,1074],"tags":[81903,81966,80968],"acf":[],"yoast_head":"\nFanatics Buying PointsBet USA For $150 Million In Cash<\/title>\n<meta name=\"description\" content=\"Fanatics finally makes sports betting deal, to buy PointsBet USA for $150M.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fanatics Buying PointsBet USA For $150 Million In Cash\" \/>\n<meta property=\"og:description\" content=\"Fanatics finally makes sports betting deal, to buy PointsBet USA for $150M.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-15T06:34:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-15T22:45:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/MR.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1662\" \/>\n\t<meta property=\"og:image:height\" content=\"935\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/\",\"url\":\"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/\",\"name\":\"Fanatics Buying PointsBet USA For $150 Million In Cash\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/MR.jpg\",\"datePublished\":\"2023-05-15T06:34:17+00:00\",\"dateModified\":\"2023-05-15T22:45:12+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Fanatics finally makes sports betting deal, to buy PointsBet USA for $150M.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/fanatics-buying-pointsbet-usa-for-150-million-in-cash\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/MR.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/MR.jpg\",\"width\":1662,\"height\":935,\"caption\":\"Fanatics founder Michael Rubin at an event in 2021. 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