Digital sports entertainment and gaming services provider DraftKings (NASDAQ:DKNG) has dropped out of the race to acquire PointsBet Holdings’ U.S. Business.
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Earlier this month, DKNG had bid for the business in an all-cash deal worth $195 million. At the time, this was a 30% premium over Fanatics’ $150 million bid for the assets. The transaction was also expected to boost DraftKing’s Adjusted EBITDA potential.
Now, the announcement from DKNG comes after privately-owned fanatics sweetened its offer by 50% to $225 million. Further, the superior offer from Fanatics has also won the support of PointsBet’s Board.
Overall, the Street has a $28.35 consensus price target on DraftKings alongside a Moderate Buy consensus rating. DraftKings shares have had a nearly 91% run over the past year and after today’s announcement are trading marginally lower by 0.5% at the time of writing.
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