DraftKings Inc. made a $195 million counteroffer for PointsBet Holdings Ltd’s US sports and online betting business, which the company had already agreed to sell to Fanatics Inc.
(Bloomberg) — DraftKings Inc. made a $195 million counteroffer for PointsBet Holdings Ltd’s US sports and online betting business, which the company had already agreed to sell to Fanatics Inc.
Fanatics, an online sports apparel retailer trying to break into the betting business, agreed to buy the operation for $150 million last month. In a letter to PointsBet management, DraftKings Chief Executive Officer Jason Robins said he thought his company could close a deal more quickly because it already has the required state gambling licenses.
In a statement, PointsBet said that its board would assess the DraftKings proposal, but that its previous decision to sell to Fanatics followed a lengthy sale process with all of the leading sports-betting operators and that the Fanatics offer represented the “most attractive risk-adjusted value” for shareholders.
Michael Rubin, CEO of Fanatics, called the DraftKings offer a “desperate move to slow down” his company, in an emailed statement. Rubin said the purchase price and other financial commitments will total more than $500 million, “so they are using the majority of their projected year-end cash just to try to block us.”
In addition to the purchase price for the business, PointsBet has ongoing marketing commitments with Comcast Corp.’s NBCUniversal that were to be transfered to the new owner. PointsBet shareholders are scheduled to vote on the Fanatics offer at a meeting called for June 30.
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