Australian gambling company PointsBet has confirmed it is rejecting a proposal from gambling operator Betr to buy 80.1% of its shares. Instead, PointsBet will accept an offer from social media provider MIXI.
Key Takeaways
- PointsBet has rejected a Betr takeover proposal and instead signed an agreement with MIXI Inc.
- Betr offered to buy PointsBet shares at AU$1.20 each, but with 57% cash and 43% scrip
- MIXI offered to buy each PointsBet share at AU$1.20 in cash
The Betr proposal intended to buy 80.1% of PointsBet shares that the company does not already hold, matching PointsBet’s valuation of AU$1.20 per share. However, the Betr proposal offered to pay that value in 57% cash and 43% scrip.
According to PointsBet, 43% of the share value was directly tied to the value of Betr shares. During its due diligence, PointsBet assessed the value this would provide shareholders, which peaked at AU$1.14 per share but fell as low as AU$1.04 per share.
However, while this was PointsBet’s primary assessment, the company also took a longer-term view during its due diligence. This found that Betr’s cost synergies were overstated and that integration with PointsBet’s Canadian operations was likely to prove difficult.
“The due diligence investigations undertaken by PointsBet reinforce the view of the PointsBet Board that the value of the Betr proposal is materially below the AU$1.20 in cash per PointsBet being offered by MIXI Australia,” said the PointsBet release.
Long PointsBet acquisition talks come to an end
It’s been several months since rumors of an acquisition of PointsBet first surfaced. Fanatics closed its acquisitions of PointsBet’s U.S. operations in April 2024, paying $225 million to claim PointsBet’s licensing infrastructure across the country. Fanatics used this to launch Fanatics Sportsbook.
PointsBet issued a “Response to Media Speculation” in November 2024, rejecting a report that it was subject to an AU$300 million takeover bid.
However, in 2025, the company started assessing several bids. In February, the PointsBet Board leaned towards an acquisition by BlueBet, which offered around AU$240 million and AU$260 million. Other contenders included MIXI and Betr.
Betr increased its offer for 80.1% of PointsBet in May to around AU$360 million, with the company already holding a 19.9% stake. After PointsBet confirmed it was considering Betr’s proposal in May and June, the most recent news will come as a blow to Betr, with PointsBet favoring MIXI’s offer.
