Fanatics founder and CEO Michael Rubin in his office in New York.
The Washington Post | Getty Images
Fanatics has upped the ante as it looks set to acquire US business PointsBet.
The sports platform company raised its offer by 50% to $225 million in an attempt to outbid DraftKingswhich made a non-binding offer of $195 million earlier this month.
PointsBet shareholders will formally vote on the new offer on Thursday evening.
“The board unanimously supports the improved proposition from Fanatics Betting and Gaming, which provides excellent value and certainty,” PointsBet chairman Brett Paton said in a statement.
PointsBet gave DraftKings until 6pm on Tuesday (Melbourne time) to make a binding offer, but they failed to do so.
DraftKings CEO Jason Robins previously told CNBC that while the deal would not be transformational for DraftKings, it would allow the company market share growth.
If the deal is formally approved by PointsBet shareholders and regulators, it will give Fanatics much-needed US real estate in the 15 US states where it operates. PointsBet is the seventh largest American sports betting operator.
“Our US team will have a strong future as part of the Fanatics Betting and Gaming group and PointsBet will build on opportunities in Australia and Canada supported by a strong balance sheet,” Paton said.
Fanatics CEO Michael Rubin told CNBC after DraftKings’ announcement that he is very skeptical of their proposed bid, which he sees as an attempt by DraftKings to slow down Fanatics.
“It’s a move to delay our ability to enter the market,” Rubin said. “I think they’re more worried about us than I would have thought.
DraftKings and Fanatics declined to comment on the report.