PointsBet and NTD limited, the News Corp-led company that owns the Australian Betr brand are in talks to sell each other’s Australian operations.
Following The Australian’s disclosure, PointsBet announced last week that it was in talks to sell its Australian division to NTD Pty Limited.
This year, News Corp, Tekkorp Capital, and longtime industry leader Matt Tripp formed the NTD venture, which manages the Betr brand with a focus on Australia. This year saw the US debut of another operator name Betr; however, the two are unconnect.
Any prospective sale “would be evaluate in the context of PointsBet’s worldwide strategy and opportunities,” the company declared.
Discussions between PointsBet and NTD are still in the early stages and are, therefore, incomplete. The conclusion of any contractual transaction from these discussions is not guaranteed.
According to its ongoing disclosure responsibilities, PointsBet will keep the market informed.
The Australian Securities Exchange (ASX) nevertheless questioned the announcement to ascertain whether PointsBet should have announce being compelle to do so by media reporting.
If the fact that conversations were taking place did not constitute “information that what a reasonable person would expect having a material effect on the price or value of its securities,” the ASX required an explanation.
PointsBet stated that it didn’t think the discussions would matter. It, it was state, was due to the conversations’ “preliminary and incomplete nature.”
The morning after the talks were confirm, PointsBet’s stock price increased by more than 10%.
The company announced it since the original report included various assertions that needed clarification, like the claim that “PointsBet is about to break apart.”
As the statement was deem “market sensitive,” anticipated that it would materially affect the share price of Pointsbet. The operator, however, claimed that this was just a result of an “internal administrative error.”
According to the company, “PointsBet has reviewed its internal protocols to ensure that this administrative error does not repeat.”
PointsBet Australia arm
Currently, PointsBet operates in the US, Canada, and Australia.
Australia was its largest market in the three months that ended on September 30, accounting for AU$ 47.5 m in B2C revenue after promotions.
In the third quarter, the company generated AU$ 2.7 m from B2B activities, AU$ 29.5 m from the US, and AU$ 1.7 m from Canada.