SYDNEY, AUSTRALIA: Fanatics, a sports platform company, has agreed to acquire PointsBet, a sports betting company, in a deal worth $150 million in cash. The acquisition will give Fanatics access to PointsBet’s U.S. operations, which include licenses in 15 states.
Fanatics is a privately held company with a valuation of $31 billion. The company has forecast 2023 revenue of $8 billion. Fanatics owns commerce assets, a sports trading card business, and is building out a sports betting division. The company acquired legendary trading card company Topps for $500 million last year.
PointsBet is a publicly traded company with a market capitalization of $1.2 billion. The company is based in Australia and has operations in the United States, Canada, and Australia. PointsBet is known for its innovative sports betting products, including its “PointsBetting” feature, which allows bettors to wager on the margin of victory in a sporting event.
The acquisition of PointsBet is a major coup for Fanatics. The deal will give Fanatics a major presence in the U.S. sports betting market, which is expected to grow significantly in the coming years. The acquisition will also help Fanatics to diversify its business and reduce its reliance on its commerce assets.
The deal is expected to close in the second half of 2023.
Here are some additional details about the deal:
- Fanatics will pay $150 million in cash for PointsBet’s U.S. operations.
- The deal is expected to close in the second half of 2023.
- Fanatics will gain access to PointsBet’s licenses in 15 states.
- Fanatics will also gain access to PointsBet’s technology and staff.
- The deal is expected to help Fanatics to expand its sports betting business and compete with larger rivals DraftKings and FanDuel.
What does this mean for the future of sports betting?
The acquisition of PointsBet by Fanatics is a major development in the sports betting industry. The deal shows that Fanatics is serious about becoming a major player in the industry. It also shows that the sports betting market is consolidating, as larger companies look to acquire smaller rivals.
The deal is likely to have a number of implications for the future of sports betting. First, it is likely to lead to increased competition in the industry. This will be good for consumers, as it will lead to lower prices and more innovative products. Second, the deal is likely to accelerate the growth of the sports betting industry. As more companies enter the market, more people are likely to start betting on sports. This could lead to billions of dollars in new revenue for the industry.
Overall, the acquisition of PointsBet by Fanatics is a positive development for the sports betting industry. It is likely to lead to increased competition, lower prices, and more innovative products. This is good news for consumers, as it will make sports betting more accessible and affordable.
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