DraftKings stock slips after withdrawing bid to buy PointsBet’s U.S. operations

Shares of DraftKings Inc.
DKNG,
+3.10%
slipped 0.7% in premarket trading Wednesday, after the online sports-betting and digital sports entertainment company said overnight that it is no longer pursuing the acquisition of Australia-based PointsBet Holdings Ltd.’s
PBTHF,
-5.31%

PBH,
+0.61%
U.S. business. Earlier this month, DraftKings had bid $195 million in cash to buy PointsBets’ U.S. operations, which at the time was 30% more than the $150 million Fanatics Betting and Gaming agreed to pay. But DraftKings’ announcement Wednesday comes after PointsBet amended its buyout agreement with Fanatics to $225 million, or about 15% above DraftKings’ bid. DraftKings’ stock, which has rocketed 127.9% year to date, had closed June 13 at a 17-month high. In comparison, the S&P 500
SPX,
+1.15%
has advanced 14.0% this year.