PointsBet, Rush Avenue Interactive Considered As Takeover Candidates

Posted on: March 7, 2023, 02:44h. 

Final up to date on: March 7, 2023, 04:25h.

Amid expectations that 2023 might be a 12 months of serious consolidation exercise within the sports activities wagering trade, PointsBet (OTC: PBTHF) and Rush Avenue Interactive (NYSE: RSI) stay potential takeover targets, in keeping with market observers.

Rush Street Interactive
A Guess Rivers sportsbook in Illinois. Operators Rush Avenue Interactive and PointsBet are seen as takeover targets. (Picture: Wall Avenue Journal)

Each operators have lengthy been tied to mergers and acquisitions hypothesis. These rumors persist regardless that no offers have materialized, and each corporations stay unbiased entities at present. With analysts forecasting an uptick in takeover exercise this 12 months, nevertheless, there’s hypothesis that might change. PointsBet CEO Sam Swanell not too long ago famous some suitors have expressed curiosity within the Australia-based gaming firm.

The quantity of third-party strategic curiosity proven in our firm demonstrates we’ve constructed a really priceless enterprise,” he mentioned through the firm’s fourth-quarter monetary replace. “This offers us vital optionality round how we take the enterprise ahead to maximise worth for our shareholders.”

PointsBet’s Australia and US operations have each been the topics of takeover chatter.

Why PointsBet, RSI May Be Engaging Targets

PointsBet might be an attention-grabbing goal as a result of it’s established within the enticing US market regardless of its small total market share.

Mix PointsBet’s present US licenses and market capitalization of simply $309.48 million, and it might be an inexpensive goal for a purchaser that believes it may well develop the operator’s home footprint. Penn Leisure (NASDAQ: PENN) would seemingly Win a PointsBet takeover as a result of the regional on line casino operator owns an fairness stake within the Aussie agency.

Particular to Rush Avenue Interactive, that firm’s market worth is $860.23 million — palatable for any variety of bigger suitors. It’s additionally nearing profitability, making it all of the extra enticing to would-be consumers. The operator additionally presents a sexy mixture of US and Latin America publicity.

RSI operates underneath the BetRivers and PlaySugarHouse manufacturers, and is at the moment obtainable with cellular or retail companies in Canada, Colorado, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Pennsylvania, Virginia, and West Virginia. The corporate can also be one of many largest sportsbook operators in Colombia and Mexico.

Attention-grabbing RSI Rumors

RSI went public in 2020 following a reverse merger with a particular objective acquisition firm (SPAC). Since then, it’s been a rumored goal for some big-name suitors. That chatter might intensify as a result of operator’s iGaming publicity, which is coveted and considerably extra worthwhile than on-line sports activities wagering. Ought to even a small variety of states approve web casinos this 12 months, RSI takeover discuss might acquire momentum.

Earlier hypothesis indicated ESPN and Fanatics expressed curiosity in buying RSI, however no deal got here to life. These corporations might revisit potentialities with RSI, or different entities might become involved.

“There’s additionally been hypothesis that private-equity agency Apollo World Administration might scoop up RSI because it seems to be for a sports-betting operator to merge with its Yahoo Sports activities property,” Insider reported.



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