PointsBet, an Aussie sports betting firm, has chosen to return a substantial sum to its shareholders following the sale of its American operations to Fanatics. They intend to distribute a total of 458 million Australian dollars, equivalent to roughly 295 million US dollars.
The funds will be distributed in two installments. The initial portion, approximately 315 million Australian dollars, will be disbursed shortly after the sale is finalized, anticipated to occur in mid-September. The second installment, ranging from 125 to 143 million Australian dollars, will be distributed around March 2024.
PointsBet asserts that after divesting its American operations, it will require less capital to manage its remaining operations. Consequently, they have opted to return the majority of the sale proceeds, coupled with a significant portion of their remaining cash reserves, to their investors.
The American business constituted roughly half of PointsBet’s overall revenue.
America made up roughly half of PointsBet’s earnings and forty percent of its net gain in the initial six months of 2023. During the period ending on December 31st, 2022, the US business contributed $1.6 billion to the company’s total income of $3.2 billion.
PointsBet previously declared that its ventures in Australia and Canada were essentially achieving a balance between income and expenses.
PointsBet consented to sell its American operations to Fanatics after the sports retail giant outbid DraftKings.
Fanatics’ FBG initially reached an agreement with PointsBet in May to purchase its US operations for $150 million. However, in June, DraftKings submitted a more substantial bid of $195 million. PointsBet indicated it would negotiate with DraftKings as it believed this could be a more favorable offer.
After verifying that FBG had improved its proposal, DraftKings declared it would no longer attempt to reach an agreement.
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