Both companies announced the deal on Sunday night, soon after CNBC reported an agreement had been reached. It is proclaimed that “The deal is worth about $150 million in cash.”
“Fanatics and PointsBet are excited to enter into an agreement for Fanatics Betting and Gaming to acquire PointsBet’s U.S. business,” the companies stated in a joint statement.
“While there are still several steps in the process to complete the acquisition, both parties are confident in the outcome. Fanatics Betting and Gaming and PointsBet will provide further details of the proposed deal and timely updates in the coming weeks,” they added.
With the agreement,Fanatics will have access to at least 15 states, according to individuals familiar with the deal who declined to be identified because the decision-making process was private.
“Fanatics expect to have access to the majority of states where PointsBet operates by the start of the NFL season,” according to one of the representatives.
PointsBet, whose shares are traded in Australia, has anticipated holding a stakeholder vote on the deal in late June. However, only PointsBet’s U.S. assets are part of the deal. Fanatics has to determine a plan to fund some of the remaining cash flow burn from PointsBet, which has to be spent heavily on marketing to compete with their magnifying rivals, DraftKings and FanDuel.
According to the latest statistical reports by PointsBet, the firm anticipates a loss of between $77 million and $82 million for the second half of the year. Abstracting “very challenging” market conditions, PoinstBet said on Sunday that it would be essential to raise additional capital at a “significant discount to recent market prices” in the forthcoming period, if the deal with Fanatics somehow fell apart.
Moreover, NBCUniversal will receive the proceeds from its previous agreement with PointsBet, and will no longer hold an equity investment, PointsBet announced.
NBC obtained an equity stake of 4.9% in PointsBet in 2020.
Furthermore, Fanatics has been in talks with a number of different sports betting organisations in recent years as it plots its path forward in online gaming.
Earlier this month, Matt King, the CEO of Fanatics Betting, said at the SBC Conference that, “This is a 10-year journey, and we’re going to move very methodically through that 10-year journey. And by doing that and taking that approach, it allows you to be a bit more considered in your decisions. You can kind of move slower, slightly slower, today in order to move fast later.”
Fanatics is a sports platform company obtaining a valuation of $31 billion. The company, on the other hand, has estimated a revenue of $8 billion in 2023.
The firm also owns commerce assets, a sports trading card business, and is constructing a sports betting segmentation. In addition, the firm also acquired legendary trading card company Topps for $500 million in the previous year.
- Published By Team Genuine Reporter