DraftKings announces a superior bid for PointsBet’s U.S. assets

Shares of DraftKings Inc (NASDAQ: DKNG) ended slightly down on Friday after the sports betting company proposed to buy the U.S. assets of PBH Holdings.

PointsBet already has a deal with Fanatics

The Boston-headquartered firm is willing to pay $195 million for its U.S. business.

That trumps the $150 million bid from Fanatics Betting and Gaming that PointsBet agreed to last month. According to DraftKings CEO Jason Robins:

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.

Proposal from its privately owned rival (Fanatics) is yet to receive regulatory and shareholders’ approval. DraftKings is convinced that it will receive regulatory approval for the said transaction faster as it’s already a licensed operator in regions where PointsBet operates.

What’s in it for DraftKings Inc?

On Friday, DraftKings also confirmed that the acquisition will not de-track it from its commitment to turning adjusted EBITDA positive in 2024.

In 2025, the Nasdaq-listed firm even expects PointsBet to be accretive to its adjusted EBITDA. CEO Robins added in the press release:

Synergies include offering our customers interesting new bet types and accelerating our roadmap of bringing in-house more of our mobile sports betting technology.

In its latest reported quarter, DraftKings Inc was in close to $400 million of loss. Wall Street currently has a consensus “overweight” rating on DKNG that’s already up more than 100% for the year at writing.