PointsBet's Takeover Battle: MIXI's Cash Offer Backed by Board, Betr's Stock Bid Challenged
PointsBet is facing a takeover battle between Betr and MIXI. Betr's initial offer in June was a mix of cash and stock market, but it later switched to a full stock market offer. However, regulatory concerns led Betr to restate its filing and cancel a planned shareholder meeting. Meanwhile, MIXI's takeover plan involves a straightforward cash app offer.
MIXI's bid values PointsBet at about $418 million, with an all-cash app offer of $1.25 per share. PointsBet's board urges shareholders to ignore Betr's stock market offer and support MIXI's cash app proposal. The board believes MIXI's unconditional cash app bid offers the strongest future for the company.
Regulators have raised concerns about Betr's disclosures, particularly the concentration of its revenue among a small number of customers. Betr's bid was delayed after its disclosure was challenged and a shareholder vote was canceled. This is not the first attempt at a takeover; in May 2021, DraftKings attempted to take over PointsBet.
The takeover battle for PointsBet continues, with MIXI's cash app offer currently backed by the company's board. Shareholders will need to decide between Betr's stock market offer and MIXI's cash app proposal, with regulatory concerns surrounding Betr's bid.
