PointsBet dispels A$300 million takeover rumours

Neha Soni November 12, 2024

SiGMA news

PointsBet has dispelled rumours suggesting that it is in talks of being acquired by an unidentified company for a deal valued at about A$300 million.

A recent report by The Australian suggested that the betting powerhouse had started mergers and acquisition (M&A) negotiations with an Asian company. The deal would have been subject to numerous regulatory approvals, including from the Foreign Investment Review Board (FIRB). The report also implied that the ASX listed operator has been eyeing opportunities for a merger with other suitors.

The report caused the company’s share price to jump by 24 percent to A$1.02, before settling down to a value below A$1.0.

The company came forward to address the matter and said it is not in M&A discussions as the article had suggested.

In addition, it said that if PointsBet was to enter into such a discussion, it will keep the market updated as required per ASX Listing Rule 3.1. The rule requires listed entities to immediately notify ASX of any information that a reasonable person would expect to have a material effect on the price or value of its securities.

The last straw

Analysts have long considered PointsBet to be ripe for a merger. This analysis was concretised in light of sale of the company’s United States (US) assets to Fanatics. The deal was mutually beneficial to both parties as it helped PointsBet focus on its core market and offerings while also helping Fanatics continue its ongoing expansion in the US.

PointsBet has been stable ever since it has shifted its focus towards Australia. This comes despite the country’s mulled gambling ad regulations. The company said that it is optimistic about its business in Australia and that it would be more or less unaffected from the country’s gambling ad restrictions. Australia has been considering proposals to ban or significantly limit gambling ads. One of the most recent proposals outlines a cap of not over two ads per hour till 10 pm.