PointsBet Rejects Betr Offer
PointsBet has rejected a takeover proposal from Betr Entertainment. The company chose to support MIXI Australia’s all-cash offer of $1.20 per share, calling it the better option for shareholders.
MIXI Offer Provides Clear Value
The PointsBet Board reviewed both proposals in detail. It found MIXI Australia’s offer more valuable and reliable. MIXI, a subsidiary of Japan-based MIXI, Inc, proposed a $1.20 per share cash payment for all PointsBet shares. This offer remained stable compared to Betr’s fluctuating valuation, which ranged between $1.03 and $1.14.
MIXI structured its bid as a scheme of arrangement. If shareholders do not approve the scheme, MIXI will proceed with an off-market takeover offer.
PointsBet Reviews and Rejects Betr’s Proposal
Betr wanted to acquire the 80.1% of PointsBet it doesn’t already own. It offered shareholders a choice: full cash, full scrip, or a mix of both. However, the offer came with limits on how much cash or scrip investors could receive. These caps meant many shareholders would receive a blended amount, not their preferred mix.
Based on the market value of Betr shares as of June 13, 2025, the offer amounted to roughly $1.05 per share. That amount remained below MIXI’s fixed cash offer.
Board Identifies Risks in Betr’s Assumptions
The Board conducted due diligence and found several concerns. It believed Betr’s projected cost savings were too optimistic. Maintaining growth and customer retention would require more investment than Betr had assumed.
PointsBet also warned that revenue could drop due to customer overlap with Betr. Previous deals, such as Betr’s acquisition of BlueBet, supported this concern. The Board also highlighted challenges in integrating operations and separating PointsBet’s Canadian business, calling Betr’s timeline unrealistic.
In addition, PointsBet criticized Betr’s financial assumptions. It said Betr used overly high trading multiples and ignored implementation costs.
Board Ends Discussions with Betr
After its review, the Board unanimously decided that MIXI’s offer was clearly superior. It ended all talks with Betr.
Financial firm Flagstaff Partners and legal adviser Baker McKenzie continue to guide PointsBet through the process. The company will now focus on completing the MIXI transaction, subject to shareholder approval.