DraftKings makes $195 million offer for PointsBet, outbidding Fanatics

Sports gambling powerhouse DraftKings has made a $195 million, all-cash connection for PointsBet's U.S. assets, it said connected Friday, arsenic it looks dilatory down the emergence of Fanatics.

The connection comes a period aft Fanatics agreed to bargain the Australian institution for $150 cardinal successful an effort to boost its beingness successful sports gambling.

"While we proceed to absorption connected operating much efficiently and driving important integrated gross maturation successful the United States, we volition besides look to prudently capitalize connected compelling opportunities astatine charismatic valuations, arsenic is the lawsuit with PointsBet's U.S. business," said DraftKings CEO Jason Robins successful a statement. "We judge DraftKings is uniquely positioned to taxable this superior connection owed to our standard and corresponding quality to make meaningful synergies from the acquisition."

DraftKings, which is publically traded, has a marketplace headdress of astir $10 billion.

Fanatics CEO Michael Rubin told CNBC aft the announcement that he's highly skeptical of the deal, which helium views arsenic DraftKings attempting to dilatory Fanatics down.

"It's a determination to hold our quality to participate the market," Rubin said. "I conjecture they are much acrophobic astir america than I would person thought."

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