Shares of fantasy sports and sports betting company, DraftKings (NASDAQ: DKNG) dipped in pre-market trading at the time of publishing after the company announced a bid to acquire PointsBet’s U.S. business in an all-cash deal with a purchase price of $195 million. This purchase price is at a 30% premium to Fanatics’ bid for PointsBet’s U.S. business for $150 million.
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Jason Park, DraftKings’ CFO commented, “We expect this transaction to increase our Adjusted EBITDA potential in 2025 and beyond and not impact our expectations of achieving positive Adjusted EBITDA in 2024. We are excited about the potential synergies available by acquiring PointsBet’s U.S. business, including offering our customers interesting new bet types and accelerating our roadmap of bringing in-house more of our mobile sports betting technology.”
Analysts are cautiously optimistic about DKNG stock with a Moderate Buy consensus rating based on 17 Buys, eight Holds, and two Sells.