PointsBet to Distribute A$458 Million to Shareholders Following US Sale
PointsBet, an Australian sports wagering firm, is returning value to its stakeholders following the sale of its American operations to Fanatics. The company’s stockholders have endorsed a plan to distribute up to A$458 million to shareholders. This capital will be sourced from the sale of the US business and the company’s liquid assets. The initial disbursement of A$315 million will be made in September, followed by a subsequent payment of between A$125 million and A$143 million in March 2024. PointsBet states that the US business contributed to half of its total earnings.
During the initial six months of 2023, the United States represented approximately half of PointsBet’s earnings, and 40% of its net gain. In the period concluding on December 31, 2022, the US enterprise contributed $1.6 billion in income to the organization, nearly half of its total revenue of $3.2 billion.
PointsBet previously declared that its ventures in Australia and Canada would essentially be at a standstill.
PointsBet consented to sell its US operations to Fanatics after the sports retail behemoth submitted a bid exceeding that of DraftKings.
Fanatics’ FBG initially reached an accord with PointsBet in May to acquire its US operations for $150 million. However, in June, DraftKings presented a more substantial bid of $195 million. PointsBet indicated it would engage in negotiations with DraftKings as it considered this to be a more favorable proposition.
After verifying FBG’s enhanced offer, DraftKings declared it would no longer pursue the arrangement.
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