• Loading stock data...
Wednesday, April 17, 2024
  • -
    days
  • -
    hours
  • -
    minutes
  • -
    seconds

Fanatics Boosts Offer For PointsBet U.S. Operations, DraftKings Effort Flops

  • Rubin-led sports merchandising giant raises bid to $225 million
  • Deal now poised for shareholder approval on Friday
Fanatics is buying auction marketplace PWCC.
Fanatics

DraftKings’ bid to outmaneuver rival sports betting entity Fanatics for control of PointsBet’s U.S. operations has flopped, as PointsBet’s board is unanimously recommending a newly sweetened offer from Fanatics.

After DraftKings earlier this month made a non-binding, $195 million offer for the American operations of PointsBet, topping Fanatics’ original $150 million deal, Fanatics came back on Monday with a new $225 million bid, a 50% jump. 

Additionally, DraftKings missed PointsBet’s Tuesday deadline to submit a binding offer. 

As a result, the PointsBet’s board is now firmly standing behind Fanatics ahead of a scheduled shareholder vote on Friday in Australia.

The Fanatics offer “is superior in terms of both pricing and certainty of being able to complete on a timely basis,” PointsBet said late Tuesday.

DraftKings’ surprise entry initially represented a rare business obstacle to Fanatics amid a meteoric expansion in recent years beyond its sports merchandising origins into areas such as trading cards, collectibles auctions, content, and sports betting. 

Ultimately, though, Fanatics was able to flex significant muscle, not surprising given their $31 billion valuation, and will now compete directly against DraftKings in a still-developing U.S. betting market, including in top-performing states such as New York, New Jersey, Pennsylvania, and Michigan.

Fanatics CEO Michael Rubin previously branded the DraftKings move for PointsBet as “desperate.”

In the new deal structure, Fanatics will pay $175 million at closing, up from $100 million in the original offer, and another $50 million in early 2024.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Fanatics Steps Into Live Events After Being Tripped up by Uniforms

The new three-day sports festival is modeled somewhat after New York Comic Con.
Ken Goldin

Goldin Auctions Acquisition by eBay Sparks Showdown With Fanatics

The online giant acquires the prominent high-end sports memorabilia auction house.

Women’s Basketball Finally Has a TV Deal to Match the Excitement. Now What?

A lucrative new media-rights contract could rectify problems of the past, but the future of March Madness media rights is anyone’s guess.
Mar 16, 2024; Washington, D.C., USA; North Carolina State Wolfpack forward DJ Burns Jr. (30) cuts the net after defeating the North Carolina Tar Heels for the ACC Conference Championship at Capital One Arena.

How Two College Seniors Helped DJ Burns Cash In on a Final Four Run

Two college seniors are facilitating deals for NC State’s big man.
podcast thumbnail mobile
Front Office Sports Today

Can MLS Get Bigger Than MLB?

0:00
0:00

Featured Today

Mar 31, 2024; Portland, OR, USA; NCAA officials measure the three point line while coaches from the Texas Longhorns and NC State Wolfpack watch with referees in the finals of the Portland Regional of the NCAA Tournament at the Moda Center center.

NCAA Has No One to Blame for Latest Women’s March Madness Transgressions

NCAA is still making avoidable mistakes three years after a complete overhaul.
Nov 16, 2015; Bloomington, IN, USA; General view of the championship banners at Assembly Hall prior to the game between Austin Peay and Indiana.
March 31, 2024

How to Make It in Basketball: Become a Manager at Indiana

Inside the Hoosiers’ unglamorous, profoundly rewarding incubator for basketball’s biggest names.
Mar 19, 2021; West Lafayette, Indiana, USA; Oral Roberts Golden Eagles forward Kevin Obanor (0) and guard Carlos Jurgens (11) and guard Max Abmas (3) and forward Francis Lacis (22) celebrate after an overtime victory over the Ohio State Buckeyes in the first round of the 2021 NCAA Tournament at Mackey Arena.
March 30, 2024

Cinderella Runs Are Great in the Moment. Then Things Can Get Messy

Sustaining success can arguably be more challenging than beating Goliath.
Mar 10, 2024; Las Vegas, NV, USA; Southern California Trojans guard JuJu Watkins (12) cuts the net after the Pac-12 Tournament women's championship game against the Stanford Cardinal at MGM Grand Garden Arena.
March 28, 2024

The Pac-12 Built a Women’s Basketball Powerhouse. Then Realignment Hit

The breakup is happening at the worst time for the sport.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Nike
Multiple - USA Careers
NBA
Multiple - USA Careers
Dunham's Sports
Multiple - USA Careers

Jontay Porter Bet ‘Millions’ on FanDuel Account: Report

The Raptors forward is currently under league investigation.
April 11, 2024

Following a Long List of Blows, MLB Walks for a Change

Officials say the Dodgers’ superstar is ‘considered a victim in this case.’
April 12, 2024

A Decade-Long Timeline of the Shohei Ohtani–Ippei Mizuhara Saga

Ohtani’s former interpreter has been federally charged with bank fraud.
Sponsored

Rapid Returns: How Technology Is Getting You Back to Your Seat

How Oracle’s POS technology is helping fans get back to their seats faster.
April 11, 2024

Shohei Ohtani’s Interpreter Stole $16 Million to Cover Gambling Losses, Feds Say

Authorities detailed how Ippei Mizuhara hid bank transfers from Ohtani.
April 10, 2024

Shohei Ohtani’s Interpreter Pleading Guilty to New Charges, per Report

Ippei Mizuhara is said to have lost over $4.5M of Ohtani’s money.
April 2, 2024

Sportsbooks Say Iowa-LSU Smashed Records

It’s the new all-time most-wagered women’s sports competition on FanDuel.
March 27, 2024

NCAA Wants to End Prop Betting on College Sports. Will It Succeed?

The announcement comes just days after the NBA began investigating a prop scandal.