DraftKings Backs Out Of PointsBet Deal: Oppenheimer Analyst Forecasts Potential For Fanatics In OSB Market
Portfolio Pulse from Shivani Kumaresan
DraftKings Inc (NASDAQ:DKNG) has withdrawn its bid to acquire the U.S. business of PointsBet Holdings Ltd. The decision came after PointsBet's board recommended Fanatics Betting and Gaming's (FBG) improved proposal of $225 million, which is 15% above DKNG’s $195 million proposal. Oppenheimer analyst Jed Kelly reiterated an Outperform rating on DKNG shares and expects FBG to become a larger player in the OSB market. However, he does not foresee a significant near-term competitive impact for DKNG.
June 28, 2023 | 5:53 pm
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DraftKings has withdrawn from the acquisition of PointsBet's U.S. business. Despite this, an Oppenheimer analyst maintains an Outperform rating on DKNG and does not expect a significant near-term competitive impact.
DraftKings' decision to withdraw from the PointsBet deal may initially seem negative. However, the analyst's Outperform rating and the expectation of no significant near-term competitive impact suggest that this event may not have a substantial effect on DKNG's stock price in the short term.
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IMPORTANCE 75
RELEVANCE 100