PointsBet’s board has agreed to a takeover offer from Japanese consumer technology company MIXI Inc., the same week the company released financial results for the first half of fiscal year 2025 (six months ending December 31, 2024).

Shareholder Deal Details and Valuation

Under the agreement, PointsBet shareholders will receive $1.06 per share, totaling approximately CA$318 million (USD $220 million). The deal remains subject to shareholder approval.

During an earnings call on Tuesday, PointsBet Holdings Ltd. CEO Sam Swanell stated that the offer represented “a compelling opportunity for PointsBet shareholders to realize immediate and certain cash value at a premium to recent trading prices and a high implied FY25 EBITDA model.”

Competing BlueBet Bid and Board’s Response

On February 18, PointsBet received a competing takeover proposal from BlueBet, with an offer valued between CA$306 million (USD $212 million) and CA$325 million (USD $225 million). Reports suggested that two major PointsBet investors were considering supporting the BlueBet offer.

In a public statement, PointsBet clarified that it had entered into an exclusivity agreement with MIXI Inc., preventing engagement with competing bids unless they represented a superior proposal. After reviewing the BlueBet bid with financial and legal advisors, the board concluded that the offer was not viable.

Key concerns included:

• Unfunded proposal: BlueBet required raising $100 million in debt and additional capital.
• Uncertain synergies: The bid relied on speculative value creation from assumed operational efficiencies.
• Extended timeline: BlueBet requested 25 business days for due diligence, adding risk and delay.

PointsBet’s Market Presence and Financial Performance

PointsBet currently operates sportsbook services in Australia and sportsbook + digital casino in Ontario, Canada. The company previously sold its U.S. operations to Fanatics in 2023.

In its H1 FY25 results, PointsBet reported:

• 18% increase in net win for Canada (CA$16.5 million).
• 45% year-over-year growth in sportsbetting handle (CA$152.4 million).
• 39% year-over-year growth in igaming handle (CA$487.2 million).
• 49% increase in active cash clients (57,400 users).
• 6% revenue growth to CA$112 million (USD $77.5 million).

What’s Next for PointsBet Shareholders?

The board’s recommendation remains in favor of the MIXI deal, highlighting its certainty, immediate cash value, and alignment with shareholder interests. If shareholders approve the takeover, PointsBet’s future could shift toward deeper collaboration with MIXI Inc. and new strategic growth opportunities.