Betr will simply not take "no" for an answer. The company has been rejected repeatedly by PointsBet, which said that it had serious concerns about the potential buyer’s revenue-generating and business strategy.
PointsBet is now being courted as part of a new Betr bid
PointsBet said that Betr had derived a large swathe of its revenue from only a handful of gamblers over a specific period this year, refusing another recent bid.
PointsBet, at the time, doubled down on its initial backing of MIXI, a Japanese entertainment group, and even received the go-ahead for the deal in Ontario, Canada, where the company is also present.
Betr, though, is returning to the table and now offering 4.219 of its own shares for one of PointsBet’s shares that it doesn’t already own. In other words, Betr is theoretically offering AU$1.35 or $1 per share, which is already aligned with a far better value.
However, the value is still predicated on Betr’s own financial performance and business model, about which PointsBet has already been doubtful. The new offer is also all-shares, and Betr has suggested that PointsBet is now strongly incentivized to take and accept the deal.
MIXI is offering about AU$1.20 per share presently. In a statement, Betr had this to say, outlining the ongoing talks:
"We continue to firmly believe in the combination rationale and that we can create material value for PointsBet and Betr shareholders by integrating these two businesses, allowing us to profitably grow our share of the Australian wagering market."
Betr also insisted that the all-cash transaction put forward by MIXI was "inferior." The company also urged shareholders to desist from any further action until both final offers have been put on the table, so that they can choose which offer would suit them better.
PointsBet now needs to schedule a shareholder vote so that a final decision can be reached. It is not clear if MIXI would consider raising the bar once again, but Betr remains confident in its ability to secure this partnership.
