PointsBet Board Accepts Buyout Offer from Japanese Firm Mixi
PointsBet has officially backed a buyout offer from Japanese firm Mixi, following board approval of the acquisition bid. The decision is also a rejection of a higher buyout offer from Blue Bet.
LISTEN TO THIS ARTICLE:BlueBet had put forth a competing bid of approximately AU$360 million to acquire PointsBet. This offer, filed on February 18, outlined a transaction structured as a scheme of arrangement, comprising a cash pool of between AU$240 million and AU$260 million, alongside scrip consideration valued at AU$100 million to AU$120 million. Additionally, BlueBet identified at least AU$40 million in annual synergies.
Related: PointsBet Enjoys Significant FY24 Growth in Canada and AustraliaThe structure of BlueBet's proposal included a scrip bid, which is a form of takeover offer where shares are offered partially or entirely in place of cash. The company estimated that over 20% of PointsBet shareholders may prefer a transaction with a scrip component rather than a fully cash-based proposal.
However, PointsBet's board has decided to pursue the Mixi offer. During the company's half-year earnings call on February 25, PointsBet CEO Sam Swanell emphasized that the Mixi proposal presents a strong opportunity for shareholders, offering immediate and certain cash value at a premium to recent trading prices while also providing a high implied EBITDA multiple for fiscal year 2025.
If that deal is finalized, PointsBet shareholders will receive a cash payment of $1.06 per share, representing a premium of 27.7% compared to the company's closing price on February 25. This translates to an overall valuation of approximately AU$353 million.
The valuation of the deal reflects an enterprise value-to-EBITDA multiple ranging between 25.2x and 32.1x, based on PointsBet's fiscal year 2025 EBITDA guidance. The board of PointsBet has unanimously endorsed the offer, as highlighted in the company's half-year financial earnings report released on February 25.
Shareholders will have the opportunity to vote on the acquisition in late May, with the expectation that the transaction will be approved and implemented by mid-June. Mixi operates a variety of sports and digital gaming businesses, including ownership of the FC Tokyo football club, the horse racing betting site Net Dreamers, and the betting platform Chariloto.
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Mixi Offer Holds Better Value
Last year, speculation circulated regarding a potential $300 million sale of PointsBet to an overseas entity. Although reports suggested discussions had taken place with various suitors, including at least one company based in Asia, PointsBet publicly dismissed these claims. Takeover discussions had been ongoing for some time, with Betr, the Australian sportsbook co-founded by News Corp Australia and Tekkorp, previously linked to a bid. Betr was later acquired by BlueBet in April 2024.
Stake.com founders Ed Craven and Bijan Tehrani have also been accumulating shares in PointsBet, building a stake exceeding 5% in the company.
In its latest financial results, PointsBet reported figures for the first half of the 2025 fiscal year, covering the period from July to December 2024. Revenue increased by 5.8% to $124 million, reflecting growth in both Australian and Canadian markets. Sports betting revenue rose by 4.7% to $112.6 million, while igaming revenue, which is exclusive to the Canadian market, saw an 18% increase to $11.8 million.
In Australia, the company recorded a 4.4% increase in revenue to $106.2 million, despite a decline of 21.8% in sports betting handle. However, gross win margin improved from 10.9% to 13.4%. In Canada, increased player spending in both sports betting and igaming contributed to total revenue growth of 14.5%, bringing it to $18.2 million. Canadian sports betting revenue rose 14.3% to $7.2 million, while igaming revenue increased by 14.7% to $10.9 million.
PointsBet's gross profit improved by 11.1% to $65 million, and the company reduced operating costs by 3.9%. Although finance income decreased, revenue growth allowed for a reduction in pre-tax losses, which declined by 47.4% to $17.2 million. The company also reported a foreign exchange loss of $165,000, resulting in a net loss of $17.4 million for the first half of the fiscal year, a significant improvement from the $37 million loss recorded in the same period the previous year.
Previously, PointsBet maintained a presence in the US market, operating in multiple states. However, in May 2023, Fanatics Betting and Gaming agreed to acquire PointsBet's US division for $150 million.
The deal was briefly contested when DraftKings made a higher bid of $195 million in June, prompting PointsBet to consider the offer as a potentially superior proposal. Eventually, Fanatics raised its bid to $225 million and finalized the acquisition after launching operations in New Jersey in May 2024.
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