Pointsbet share price halted for ‘material transaction’

The Pointsbet Holdings Ltd (ASX: PBH) share price won’t be going anywhere on Tuesday.

That’s because this morning, the sports betting company requested a trading halt.

What’s going on with the Pointsbet share price?

This morning, Pointsbet requested an immediate trading halt to “enable it to manage its continuous disclosure obligations in relation to a material transaction.”

Pointsbet has requested that the trading halt remain in place until the earlier of the time it makes an announcement to the market and the commencement of normal trading on Wednesday.

No details have been released in relation to what the “material transaction” involves.

What could it be?

It is worth noting that the company’s Pointsbet USA business has been the subject of takeover approaches recently.

And with reports claiming that the two potential suitors have a grudge to settle, it wouldn’t be a surprise if a bidding war breaks out.

According to the New York Post, the CEO of DraftKings (NASDAQ: DKNG), Jason Robins, is determined to “level the score” with Fanatics boss Michael Rubin.

Draftkings made a US$195 million offer for the business earlier this month, outbidding Fanatics’ offer of US$150 million.

The report claims that Robins still holds a grudge after Rubin walked away from advanced US$48 billion merger negotiations in 2021. This deal would have been a 50:50 merger with each company valued at approximately US$24 billion, according to sources.

However, Rubin is understood to have walked away near the end of the process.

Since then, DraftKings shares have lost more than half their value and sources say that Robins has held a grudge ever since. The company has denied this is the case, stating:

To suggest that there is an ulterior motive that is personal and not business related is irresponsible and not grounded in reality.

Don’t forget Australia

It is also worth remembering that Pointsbet has previously talked about selling its Australian operations.

And while that seems to have taken a backseat now, it is possible that an offer has been tabled for this side of the business.

Stay tuned for the announcement, expected tomorrow.