Published at 03:28 on March 15, 2023
Last update: March 16, 2023 at 12:27h.
PointsBet OTC: PBTHF has been long considered a target for a takeover — this sentiment applies to both its Australia operations and those in the US. Speculation is now intensifying regarding the former.
Citing unidentified sources, the Australian Financial Review reports that Tabcorp held initial talks with PointsBet regarding a takeover of the latter’s Aussie sports wagering business. Tabcorp, if that’s true, would be at most the third company to possibly move on PointsBet operations in its home nation. The other two are Betr parent NTD Plc Limited and Entain Plc. (OTC: GMVHY).
10 A PointsBet spokesperson was not available for comment by the Australian Finance Review. “This gives us significant flexibility around how we take the business forward to maximize value for our shareholders.”
Rumors about the possible sale of PointsBet date back at least a year. “This gives us significant optionality around how we take the business forward to maximize value for our shareholders.”
Rumors about the potential sale of PointsBet date back at least a year and are widely believed to have been initiated by chatter that News Corp.-backed Betr was looking to bid for its rival.
What a Takeover Could Mean for PointsBet’s US Ops
While rumors regarding the fate of PointsBet’s Australia business are long-running, the same is true regarding the operator’s US unit.
Should a takeover of the company’s Australia outfit materialize, that could increase the likelihood of a similar move for the firm’s US arm. Some potential domestic buyers might not be interested in buying PointsBet outright because they don’t have international operations and don’t want to contend with Australian regulations.
Additionally, if PointsBet’s Australian unit is sold before a similar move occurs in the US, the price a suitor in the US would pay for just the North American business would be more digestible than the cost of buying the entire company. PointsBet’s $271.54m market capitalization makes it affordable to any number of potential suitors. That figure pertains to the entire company, meaning that if it’s broken up in the acquisition process, it likely becomes all the more affordable.
For US buyers, the allure of PointsBet likely boils down to an attractive price tag, the operator’s licenses, and the belief it can effectively add market share – something the Australian bookmaker has struggled to do in this country.
What’s Next for PointsBet in Australia
It’s unclear which parties PointsBet is holding takeover talks within Australia or how advanced those discussions are. That makes forecasting the next moves difficult.
Still, the aforementioned suitors are credible. Entain has been on a buying binge of late, and executives from the Ladbrokes operator recently commented that acquisitions will remain essential to its expansion strategy.
That statement comes at the same time rumors are flying that Entain itself could be a takeover target at some point this year.