PointsBet Overseas Takeover Rumors
In the last few days, several gambling news outlets have been talking about a possible PointsBet Overseas Takeover. This is because PointsBet has had talks in recent month with potential mergers or companies looking to acquire them.
According to a report by Market Screener, the sports betting company could be the target of a takeover bid. The report said that the takeover bid could have a value of well over $197 million USD. Furthermore, the report indicates that PointsBet has engaged in both informal and formal negotiations with prospective buyers over the past few months. This includes at least one serious contender located in Asia.
Other sources have gone as far a suggest that it could be the work of SportsBettingSolutionAsia.com. However, the company has also denied the allegations. They said that they are a Sportsbook Pay Per head provider and not in the business of taking bets.
PointsBet Denies Reports of an Overseas Takeover
Pointsbet’s shares have increased by over 80% since the beginning of September, with a rise of approximately 6%. Of course, such a merger or acquisition would require a regulatory approval and examination by the Foreign Investment Review Board.
As of November 8, 2024, Pointsbet’s market capitalization was approximately $290 million.
No PointsBet Overseas Takeover
In response to the overseas takeover allegation of PointsBet, the company has just sent out a statement. According to PointsBet, there is No PointsBet Overseas Takeover.
They said that “Generally Pointsbet does not comment on rumour or speculation.” However, they are confirming that is not in discussions as suggested in the article.”
Furthermore, “The company will keep the market updated in accordance with its continuous disclosure obligations under ASX Listing Rule 3.1.”
The report came following PointsBet’s announcement last month regarding its financial results for the first quarter of the 2025 fiscal year. The figures demonstrated significant growth across various key sectors, notably in total net win, which increased by 12% to reach $65.3 million.
Analysts have indicated that any prospective offer is likely to be positioned at a premium relative to PointsBet’s current valuation, with any potential transaction anticipated to face examination from regulatory authorities, including the Foreign Investment Review Board (FIRB).
PointsBet has recently announced a 12% increase in net win year-on-year for the first quarter of FY2025, amounting to AU$65.3 million ($42.9 million), with notable growth in its primary markets of Australia and Canada.
The Australian segment experienced a 7% increase in net win, while Canada demonstrated remarkable growth with a 62% rise, primarily driven by heightened demand for live betting options.
Takeover Rumors Persist Despite their Statement
Since PointsBet divested its US operations to Fanatics in a US$225 million transaction last June, speculation regarding a potential acquisition of its remaining Australian and Canadian operations continues to persist.
Betr, the Australian sportsbook established by News Corp Australia and Tekkorp, was rumored to be pursuing a bid as reported by Earnings+More in November of the previous year. However, Betr was subsequently acquired by BlueBet in April of this year.
In a related development, Stake.com founders Ed Craven and Bijan Tehrani have amassed a stake exceeding 5% in PointsBet. The cryptocurrency betting platform has recently begun acquiring licensed real-money gaming assets.
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