Betr Entertainment, the sports gaming and media company focused on enhancing the consumption of sports through entertainment and founded in 2022 by Joey Levy and Jake Paul, has announced a revised takeover bid for PointsBet, following its recent acquisition of a 19.9% stake.
PointsBet is a bookmaker listed on the Australian Stock Exchange (ASX), with operations in Australia and Canada.
Betr’s move challenges a rival proposal from Japanese social networking service MIXI, which also seeks to acquire PointsBet.
In an ASX filing, Betr’s offer to acquire the remaining shares of PointsBet is structured through a Scheme of Arrangement, valuing PointsBet at AS$360m, comprising $260m in cash and $100m in Betr stock. Betr claims that this provides significantly greater value than MIXI’s offer, projecting synergies of over $40m annually and a potential value of $1.33 per share for PointsBet investors.
Matthew Tripp, Chair of Betr, described their proposal as “clearly superior” to MIXI’s offer, highlighting enhanced funding security.
“Our proposal is supported by materially enhanced funding security, and as the largest shareholder in PointsBet, we now intend to vote our holding against the current MIXI proposal, reducing its likelihood of success.”
Andrew Menz, CEO, added that the synergies with PointsBet would enable Betr to capture a 10-15% market share in Australia. He emphasised the potential rapid realisation of benefits through brand and app consolidation, referencing successful past mergers.
Menz concluded that the acquisition’s operational efficiencies would facilitate greater investment in Betr’s brand and product, driving profitability enhancements.
