PointsBet Investors Favor MIXI Over BlueBet’s Takeover Offer

PointsBet’s board has given its unanimous endorsement to an A$353 million (US$222.9 million) all-cash takeover bid from Japanese consumer tech giant MIXI, setting the stage for a potential acquisition amid competing interest from Australian betting firm BlueBet. 

Attractive Cash Deal

The bid expressed by MIXI’s Australian subsidiary included the purchase of 100% of PointsBet’s shares at an A$1.06 (US$0.66) price per unit. 

Thus, investors have a compelling cash deal to take into consideration.

PointsBet’s chair, Brett Paton, expressed the board’s firm support for MIXI’s offer, emphasizing its premium valuation and strong financial appeal to shareholders.

“The PointsBet board unanimously recommends that PointsBet shareholders vote in favor of the scheme, subject to the qualifications outlined in this announcement,” Paton stated.

He added that the board’s priority has constantly been to maximize shareholder value, noting that the offer presents an attractive cash return at a favorable valuation compared to other industry deals.

Chief executive officer Sam Swanell echoed Paton’s sentiments, underlining MIXI’s appreciation of PointsBet’s technology and reputation.

“The PointsBet Board has fully considered the MIXI and MIXI Australia proposal and made an evaluation of PointsBet’s strategic plan as an independent company and the various operational and execution risks inherent in achieving this strategic plan,” Swanell said.

The CEO further described the announcement as “a compelling offer for PointsBet shareholders,” adding the price appropriately reflects the company’s premium technology assets and solid reputation in Australian and Canadian markets.

PointsBet shareholders will vote on the MIXI offer in a special Scheme Meeting slated for May 2025.

BlueBet Advocates for Its Own Bid

This development comes in the wake of BlueBet’s separate bid, which falls within the A$340 million (US$214.7 million) to A$360 million (US$227.3 million) range. 

Unlike MIXI’s straightforward cash offer, BlueBet’s proposal combines both cash and stock elements and emphasizes potential synergies worth A$40 million (US$25.2 million).

BlueBet will continue to push its competing offer, which consists of an A$240 million (US$151.5 million) to A$260 million (US$164.2 million) cash pool and a scrip consideration valued at A$100 million (US$63 million) to A$120 million (US$75.7 million). 

The firm, which merged with Betr last year, argues that its proposal could deliver significant synergies and strategic advantages.

An open letter from BlueBet’s leadership suggested that a substantial portion of PointsBet’s shareholders might prefer a deal with a stock component over an all-cash buyout. 

The letter explained that, based on their “unsolicited interactions with common PointsBet and Betr shareholders,” more than 20% of PointsBet’s shareholders would opt for an alternative that includes a scrip component instead of a cash proposal.

MIXI, a company known for its mobile gaming, social communication services, and involvement in professional sports, has been growing its betting business in Japan. 

Through its subsidiary, MIXI Australia, the company has been expanding into the Australian wagering sector under the betM brand. The company cited Australia’s deep-rooted betting culture as a key driver for its overseas expansion ambitions.

Earlier this month, BlueBet acquired TopSport for AU$10 million ($6.27 million), solidifying its customer database, brand, IP, and important contracts from Merlehan Booking Pty Ltd.