Summary
- Betr is once more striving to clinch a deal in the PointsBet negotiations.
- PointsBet needs to carefully evaluate the renewed all-cash offer.
- Betr confidently asserts that his new bid offers significantly greater value in this situation.
Betr refuses to accept no for an answer. Despite being repeatedly turned down by PointsBet, which has expressed serious doubts about the potential buyer's revenue model and business strategy, Betr remains undeterred.
PointsBet is now being courted as part of a new Betr bid
PointsBet recently revealed that Betr has been generating a significant portion of its revenue from just a few bettors over a specific time frame this year, leading them to turn down another bid. Despite this, PointsBet reaffirmed its support for MIXI, a renowned Japanese entertainment company. This support was further strengthened by a green light for their deal in Ontario, Canada, a region where PointsBet is also operational. Yet, Betr is coming back with a bold offer, proposing 4.219 of its shares for each share of PointsBet they don't already hold. This proposal translates to roughly AU$1.35 or $1 per share, which presents a much higher value. However, the offer rests heavily on Betr's financial health and business strategy, about which PointsBet has lingering doubts. The offer is entirely in shares, and Betr suggests that this should make PointsBet eager to accept the proposition. At the moment, MIXI is offering about AU$1.20 per share. Betr, in a statement, emphasized the benefits of merging, saying, We firmly believe that combining our strengths will create significant value for both PointsBet and Betr shareholders, expanding our reach within the Australian betting market. Additionally, Betr declared the all-cash offer from MIXI as inferior and advised shareholders to hold off on making any decisions until all the final offers are on the table, ensuring they can choose the best option. Now, PointsBet must arrange a shareholder vote to make a conclusive decision. It's uncertain if MIXI will increase their offer, but Betr is unwavering in its confidence to secure the partnership.
