PointsBet has walked away from talks with Betr. The board gave a clear thumbs down to Betr’s offer after wrapping up its due diligence. The company says MIXI’s all-cash offer is worth more and comes with fewer headaches—making it the better bet. The term “PointsBet rejects Betr” sums up the company’s message.

• PointsBet’s board unanimously rejected the Betr proposal after a detailed review. The decision follows a two-stage due diligence process that wrapped up earlier this month. According to PointsBet, the Betr bid simply didn’t stack up in terms of value or feasibility.

• MIXI Australia is offering a straightforward $1.20 per share in cash. In contrast, Betr’s offer—part cash, part scrip—was worth only $1.05 per share based on recent trading prices. The blended value varied depending on how many shareholders picked cash vs shares.

• Betr’s proposal allowed shareholders to choose between cash, shares or a mix, but the deal had caps. This meant shareholders would likely be scaled back depending on demand. Even in the best-case scenario, the board said the deal was less valuable than MIXI’s offer.

• PointsBet also found Betr’s synergy claims overly optimistic. The board said cost savings were overstated and didn’t account for required investment in branding, tech and customer retention. The board was also concerned about revenue losses due to overlapping customer bases.

• Implementation risks were another red flag for PointsBet. Betr’s plan assumed PointsBet’s Canadian business could be carved out cleanly—something the board thinks would be complex. Integration challenges would also hurt the chances of realising cost savings.

• PointsBet concluded that MIXI’s $1.20 per share offer is superior under all circumstances. If the shareholder vote on the MIXI scheme fails, MIXI will launch a takeover bid at the same price. “We have assessed both offers thoroughly and MIXI’s offer provides greater certainty and value,” the company said.

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