Tabcorp Could Eye Bid for PointsBet Aussie Operations

PointsBet (OTC: PBTHF) has long viewed as a potential takeover target area — sentiment pertaining to both its Australia and US operations. Speculation is intensifying regarding the former.

Citing unidentified sources, the Australian Financial Review reports that Tabcorp held initial talks with PointsBet regarding a takeover of the latter’s Aussie sports wagering business. If that’s accurate, Tabcorp would live at least the tertiary fellowship to potentially relocation on PointsBet’s operations inwards its rest home country with the other 2 beingness Betr parent NTD Pty Limited and Entain Plc (OTC: GMVHY).

A PointsBet spokesman interviewed by the Australian Financial Review didn’t point out specifically on discussions with Tabcorp, but did corroborate at that place is “there is a lot of third-party interest group in our company.” PointsBet CEO Sam Swanell made similar remarks on the operator’s fourth-quarter financial update group discussion call.

The amount of third-party strategical interest group shown inwards our accompany demonstrates we make reinforced a very worthful business,” he said during the company’s fourth-quarter financial update. “This gives us substantial optionality around how we take the byplay forwards to maximize value for our shareholders.”

Rumors pertaining to the potency cut-rate sale of PointsBet escort back up at least a twelvemonth and are widely believed to have been initiated by palaver that News Corp.-backed Betr was looking to tender for its rival.

What It Could Mean for PointsBet US Ops

While rumors regarding the fate of PointsBet’s Commonwealth of Australia concern are long-running, the same is true up regarding the operator’s US unit.

Should a takeover of the company’s Commonwealth of Australia rig materialize, that could step-up the likeliness of a similar displace for the firm’s US arm. Some potential domesticated buyers mightiness not live interested in purchasing PointsBet outright because they don’t get international trading operations and don’t want to fight with Aboriginal Australian regulations.

Additionally, if PointsBet’s Australian building block is sold prior to a similar make a motion occurring in the US, the terms a wooer inwards the US would pay for just now the Frederick North American business would be more digestible than the be of purchasing the full company. PointsBet’s securities industry capitalisation of $271.54 million is affordable for any keep down of prospective suitors, but that fig pertains to the total company, meaning that if it’s humbled upwardly in the acquisition process, it potential becomes all the more affordable.

For US buyers, the temptingness of PointsBet potential boils down pat(p) to the an attractive price tag, the operator’s licenses and the belief it can buoy effectively append market deal – something the Aussie bookie has struggled to get along in this country.

What’s Next for PointsBet in Australia

It’s non yet crystallise with which parties PointsBet is holding takeover talks with in Australia or how forward-looking those discussions are. That makes forecasting next moves difficult.

Still, the aforementioned suitors are credible. For example, Entain has been on a buying binge of tardily and executives from the Ladbrokes manipulator of late commented that acquisitions will remain essential to its expanding upon strategy.

That piece rumors wing that Entain itself could be a takeover point at some peak this year.

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