Fanatics Secures PointsBet Acquisition As Shareholders Vote In Favor
PointsBet’s shareholders met this week to discuss the acquisition proposal of $225 million from Fanatics. 98.4% of shareholders voted in favor of the offer, officially solidifying the Fanatics Sportsbook acquisition of PointsBet’s U.S. operations. This comes after Fanatics raised its initial offering of $150 million by 50% after DraftKings outbid them. This PointsBet – Fanatics M&A fast tracks the latter’s launch into more states.
The new offer pushed DraftKings out of the race, and now the stage is set for Fanatics to reap the benefits of the PointsBet acquisition.
Fanatics Claims PointsBet Victory
With the deal now set in stone, Fanatics now claims market access in 14 U.S. jurisdictions. Fanatics had initially been launching at a slower pace with sports betting offerings only live in Ohio, Tennessee, and Massachusetts. Fans can likely expect Fanatics to roll out its mobile betting app more aggressively.
“We are thrilled that the shareholders of PointsBet Holdings Inc. voted to approve our acquisition of U.S. businesses of PointsBet. We moved decisively to close the deal and we look forward to working with our friends at PointsBet Holdings Inc. to finalize the remaining acquisition details,” said a Fanatics spokesperson in a released statement.”
Fans in markets like Michigan, New Jersey, New York, and Pennsylvania will soon see Fanatics Sportsbook live alongside some of the best sports betting sites. There had already been reports that Fanatics was aiming to launch in New York by NFL season.
DraftKings’ surprise bid threw a wrench in that initial plan. However, Fanatics has managed to set itself up to stick to that launch window. Once the acquisition is completed, the sports apparel giant turned sportsbook will begin pursuing those markets they have yet to launch.
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Next Steps For Fanatics Sportsbook
Fanatics is set to begin acquiring PointsBet assets in August according to the initial deal. The company will begin with three states, although it is unknown which markets they will be. Following suit, PointsBet will continue transferring assets until all of PointsBet U.S. is converted over to Fanatics.
“This is a pivotal moment for Fanatics Betting and Gaming that will accelerate our growth in the legal online sports betting, advance deposit wagering and iGaming markets in the United States,” continued the statement. “Pending regulatory approvals in the various states in which PointsBet operates, we will have more details to share in the coming weeks on how the acquisition of PointsBet US businesses will bring to life our unique vision for Fanatics Betting and Gaming.”
PointsBet will continue as an operator in Australia and Canada. The company saw modest success in the U.S. industry and failed to carve out a major market share compared to other sports betting giants. This move allows the PointsBet to focus on what works and cut operation costs by leaving the U.S. industry all together.
The PointsBet and Fanatics saga ends with the acquisition becoming a reality.