DraftKings offers to buy PointsBet’s U.S. business for $195 million, or 30% premium over existing offer from Fanatics

DraftKings Inc.
DKNG,
-0.83%
said Friday it has submitted a bid to acquire the U.S. operations of Australia’s PointsBet for $195 million in cash, or a 30% premium over the company’s existing agreement for a sale. In May, PointsBet said it had agreed to sell the business to Fanatics Inc. for $150 million. “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,” said DraftKing’s CEO Jason Robins in a statement. Robins backed the company’s expectation of positive adjusted EBTIDA in 2024 and said a deal with PointsBet could increase that metric in 2025 and beyond. PointsBet is an online sportsbook that launched in the U.S. in 2019, and operates in 15 states, including New Jersey, Iowa, Illinois and Colorado. DraftKings stock was down 0.9% premarket but has gained 118% in the year to date, while the S&P 500
SPX,
+0.28%
has gained 15%.