DraftKings makes offer for PointsBet’s US business

The company has offered more than Fantatics was due to pay in its existing agreement.

US.- DraftKings has made a $195m. offer to acquire PointsBet’s US business. It has delivered a letter to company’s non-executive chairman and chief executive officer proposing an all-cash transaction.

DraftKings’ proposal represents a 30 per cent premium on PointsBet’s existing agreement to sell its US business to Fanatics in a $150m deal agreed last month.

Jason Robins, DraftKings’ chief executive officer and co-founder, said: “While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalize on compelling opportunities at attractive valuations, as is the case with PointsBet’s U.S. business. We believe DraftKings is uniquely positioned to submit this superior proposal due to our scale and corresponding ability to generate meaningful synergies from the acquisition.”

Jason Park, DraftKings’ chief financial officer, added: “We expect this transaction to increase our Adjusted EBITDA potential in 2025 and beyond and not impact our expectations of achieving positive Adjusted EBITDA in 2024. We are excited about the potential synergies available by acquiring PointsBet’s U.S. business, including offering our customers interesting new bet types and accelerating our roadmap of bringing in-house more of our mobile sports betting technology.”

DraftKings revenue up 84 per cent in Q1 2023

For the quarter ended March 31, DraftKings reported revenue of $769.6m, up 84 per cent compared to the same period last year. Adjusted EBITDA was a $221.6m loss, an improvement over Q1 2022’s $289.5m loss.

The company posted a net loss of $397.1m, better than the $467.6m loss from Q1 2022. Its loss per share was $0.51, down from $0.74 in Q1 2022.