PointsBet board approves MIXI acquisition bid

PointsBet has entered into a transformative acquisition agreement with MIXI Australia, facilitated through a scheme arrangement that aims to transfer 100% of PointsBet’s shareholding to the Australian subsidiary of the prominent Japanese digital entertainment and sports entity, MIXI Inc.

Upon approval of this strategic deal, PointsBet shareholders will receive a cash consideration of $1.06 per share, reflecting a substantial premium of 27.7% over PointsBet’s closing price as of February 25. The total acquisition value is estimated at approximately AU$353 million.

This cash offer corresponds to an EV/EBITDA multiple ranging from 25.2x to 32.1x, based on PointsBet’s projected FY25 EBITDA guidance, emphasizing the financial viability of the proposal.

The acquisition has received unanimous endorsement from PointsBet’s board, as disclosed in their half-year financial earnings report on February 25. A shareholder vote to approve this merger is scheduled for late May, with expectations that the scheme will be finalized by mid-June.

MIXI’s Japanese parent company is not new to the sports landscape, operating various sports and digital gaming ventures. Noteworthy among these are the FC Tokyo football team, the horse racing betting platform Net Dreamers, and Chariloto, a dedicated betting website.

BlueBet Competes with a $360 Million Offer

In a parallel development, BlueBet has countered with a competing bid for PointsBet, submitted on February 18. This proposal also leverages a scheme of arrangement and consists of a cash pool estimated between $240 million and $260 million, along with scrip considerations potentially valued at an additional $100 million to $120 million.

The total bid is therefore calculated at approximately $360 million, augmented by identified synergies projected to yield at least $40 million annually.

A “scrip bid” in Australia refers to a takeover proposal that includes shares as partial or full remuneration instead of cash. BlueBet anticipates that over 20% of PointsBet shareholders may prefer an offer including a scrip option, rather than a solely cash deal.

In a recent statement, BlueBet characterized their proposal as “highly attractive” for PointsBet shareholders. “Our offer delivers substantial strategic and financial advantages for PointsBet’s stakeholders,” remarked BlueBet’s chairman, Matt Tripp, alongside CEO Andrew Menz, who co-submitted the proposal.

To underpin this bid, BlueBet has secured equity funding commitments from respected firms including Jarden, Morgans, and Ord Minnett. The company also aims to conclude its due diligence process within the next 20 business days.

Earlier this month, BlueBet proactively pursued growth by entering into an agreement to acquire select assets from Merlehan Booking, the Australia-focused sports and racing betting entity operating as TopSport. This acquisition requires an initial payment of AU$10 million, with potential future payouts based upon BlueBet’s share price reaching designated milestones and the net gaming revenue generated by the acquired assets.

MIXI Deal: A “Compelling Opportunity” for Stakeholders

During PointsBet’s half-year earnings call on February 25, Group CEO Sam Swanell articulated that the board regards the MIXI offer as a “compelling opportunity,” enabling PointsBet shareholders to capitalize on immediate cash value at a premium relative to recent trading prices, coupled with an attractive FY25 EBITDA model.

Potential End of an Era for PointsBet?

Interestingly, as late as last year, PointsBet refuted claims of discussions regarding a $300 million sale to an international buyer. There were reports suggesting engagement with various potential acquirers, including at least one in Asia, but PointsBet categorically dismissed these rumors.

Speculation surrounding a takeover has persisted, especially as Betr—an Australian sportsbook co-founded by News Corp Australia and Tekkorp—was initially linked to a bid in November of the previous year. Betr underwent acquisition by BlueBet in April 2024, further emphasizing the shifting dynamics within the industry.

Moreover, Stake.com founders Ed Craven and Bijan Tehrani have accumulated a 5% shareholding in PointsBet, signaling increased interest in the company.

PointsBet Reports Improvement in H1 Financial Performance

On the financial front, PointsBet reported its first-half figures for the 2025 fiscal year, covering the six-month period ending December 31, 2024. The company achieved a 5.8% increase in total revenue, reaching $124 million, with growth observed across both Australian and Canadian markets.

For that period, total sports betting revenue rose by 4.7% to $112.6 million, while the igaming sector—available exclusively in Canada—experienced an impressive 18% year-on-year growth to $11.8 million.

Revenue from Australia alone surged by 4.4% to $106.2 million, despite a notable 21.8% decline in sports betting handle. However, the gross win margin exhibited improvement, rising from 10.9% to 13.4%.

In Canada, increased player spending across both sports betting and igaming propelled total revenue by 14.5%, leading to a revenue uptick to $18.2 million. Canadian sports betting revenue surged by 14.3% to $7.2 million, while igaming revenue increased by 14.7% to $10.9 million.

The gross profit for the group improved by 11.1%, totaling $65 million, while operational expenses decreased by 3.9%. Despite lower finance income, the overall revenue growth led to a 47.4% reduction in pre-tax loss, which now stands at $17.2 million.

PointsBet incurred a negative foreign exchange difference of $165,000, concluding the first half of the fiscal year with a loss of $17.4 million, markedly improved from the $37.0 million loss reported for the previous year.

Reflecting on PointsBet’s US Market Ventures

Up until recently, PointsBet maintained a foothold in the burgeoning US market, operating across multiple states. However, in May 2023, Fanatics Betting and Gaming announced its agreement to acquire PointsBet’s US segment for $150 million.

The sale encountered competitive challenges, as DraftKings later submitted a more lucrative bid of $195 million in June 2023. Following discussions, PointsBet negotiated an increased purchase price ultimately set at $225 million with DraftKings.

Fanatics successfully completed the acquisition of PointsBet’s US operations, marking its entry into the New Jersey market in May last year.