News Corp offered to buy gaming company PointsBet for $220 million+, but PB has said, 'thank u, next'.
👉 Background: News Corp is the publishing engine owned by Rupert Murdoch. And earlier this year, we learned this crew wanted to sidestep into the bookmaking industry.
👉 What happened: News Corp partnered with gaming investors to build its own wagering biz. But now, it turns out they approached Aussie bookmaker PointsBet with an offer somewhere between $220 million and $300 million.
👉 What else: Unfortunately PointsBet’s board turned the offer down around two weeks ago. And they didn't even put it to shareholders to discuss!
💡One of the key roles of a public company director is to maximise shareholder value. One way to do this is through mergers and acquisitions.
💡It's a little unrealistic to put every offer to shareholders, so boards generally use their expertise to advise shareholders on whether or not a takeover offer is in their best interests.
💡We saw Sydney Airport's board reject two offers before sending the third to shareholders. And AGL rejected Mike Cannon-Brookes' offer twice, too. So, to not even have the offer get to shareholders means News Corp swung in WAY too low... and it'll need to go bigger and better next time.
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