Entertainment
PointsBet has approved a takeover bid from MIXI Australia via a scheme arrangement which will transfer 100% of PointsBet’s shareholding to the Australian arm of Japanese digital entertainment and sports group, MIXI Inc.
If the deal is approved PointsBet shareholders will receive cash consideration of $1.06 per share as part of the deal, which represents a significant premium of 27.7% to PointsBet’s closing price on 25 February. This amounts to around AU$353 million.
This amount also equates to an EV/EBITDA multiple of 25.2x – 32.1x based on PointsBet’s FY25 EBITDA guidance range.
The deal has been unanimously recommended by the board, as published in its half-year financial earnings report on 25 February.
A vote to approve the deal will occur in late May, and the ‘scheme’ is expected to pass and be implemented in mid-June.
MIXI’s Japanese parent company operates a number of sports and digital gaming business arms, including the FC Tokyo football team, horse racing betting site Net Dreamers and betting platform Chariloto.
BlueBet submits competing $360 million bid
Meanwhile, a competing bid for PointsBet was filed by BlueBet on 18 February, which proposed an acquisition by way of a scheme of arrangement. The offer comprises a cash pool of $240 million to $260 million, plus scrip consideration of $100 million to $120 million.
This puts the total bid at around $360 million, plus identified synergies of at least $40 million annually.
In Australia, a scrip bid is a takeover offer where shares are offered partly or wholly in place of cash. The scrip is a document given to shareholders showing they should receive a certain number of stocks. BlueBet estimates over 20% of PointsBet shareholders would prefer a transaction including a scrip component rather than a cash proposal.
In a note published today, BlueBet said the proposal presents a “highly attractive” offer for PointsBet shareholders.
“Our proposal offers compelling strategic and financial benefits for PointsBet shareholders,” said BlueBet chairman Matt Tripp and CEO Andrew Menz, who jointly submitted the offer.
“The transaction offers Betr immediate additional scale, access to important technology assets and key marketing contracts, all of which will accelerate our growth ambitions.”
BlueBet added it has secured equity funding arrangements from Jarden, Morgans and Ord Minnett. In addition, it expects to complete due diligence within 20 business days.
Earlier this month, BlueBet entered an agreement to acquire certain assets of Merlehan Booking, the Australia-facing sports and racing betting company trading as TopSport.
BlueBet will pay an initial AU$10 million to acquire TopSports’ assets. The agreement also includes potential further payments, contingent on BlueBet’s share price reaching certain milestones and the net gaming revenue performance of the assets.
MIXI deal presents “compelling opportunity”
Speaking during PointsBet’s half-year earnings call on 25 February, group CEO Sam Swanell said the board believed the MIXI offer represented “a compelling opportunity for PointsBet shareholders to realise immediate and certain cash value at a premium to the recent trading prices and at a high implied FY25 EBITDA model.”
End of a chapter for PointsBet?
Incidentally, towards the end of last year, PointsBet denied reports it was in discussions over a $300 million sale to an overseas party. Media reports suggested talks had taken place with several potential suitors, including at least one in Asia, but PointsBet shut these down.
Takeover talk had been rumbling on for some time prior to this. Betr, the Australian sportsbook operator co-founded by News Corp Australia and Tekkorp, was linked with a bid by Earnings+More in November last year. Betr was then acquired by BlueBet in April 2024.
Stake.com founders Ed Craven and Bijan Tehrani, meanwhile, have built up a shareholding of more than 5% in PointsBet.
PointsBet reduces net loss in H1
Turning to the company’s results, PointsBet posted figures for the first half of its 2025 financial year yesterday. This covers the six months to 31 December 2024. Group revenue for the period increased 5.8% to $124. million, with growth across both its Australian and Canadian operations.
Total sports betting revenue was 4.7% higher at $112.6 million, while igaming, only available in Canada, climbed 18% year-on-year to $11.8 million.
Geographically, Australia’s revenue jumped 4.4% to $106.2 million, despite a 21.8% drop in sports betting handle. Gross win margin, however, improved from 10.9% to 13.4%.
In Canada, player spend was higher across both sports betting and igaming, pushing total revenue up 14.5% to $18.2 million. Canada’s sports betting revenue increased 14.3% to $7.2 million and igaming 14.7% to $10.9 million.
Group gross profit improved 11.1% to $65 million, while operating costs were reduced by 3.9%. Finance income was lower, but revenue growth meant pre-tax loss was cut by 47.4% to $17.2 million.
PointsBet accounted for $165,000 in negative foreign exchange difference. As such, it ended H1 with a $17.4 million loss, an improvement on $37.0 million in the previous year.
PointsBet’s US days of yesteryear
Up until last year, PointsBet also had a presence in the US market, stretching across a host of states. However, Fanatics Betting and Gaming in May 2023 agreed to acquire the PointsBet US division for $150.0m.
It was not quite all plain sailing with the sale though. In June of the same year, DraftKings submitted a higher proposal of $195.0m. PointsBet said it would engage with DraftKings over what it said could be a “superior” proposal and eventually agreed on a higher purchase price of $225.0 million.
Fanatics completed its takeover of PointsBet’s US operations after going live in New Jersey in May last year.
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iGB Editorial Team