DraftKings stock slips after withdrawing bid to buy PointsBet's U.S. operations

Shares of DraftKings Inc. (DKNG) slipped 0.7% in premarket trading Wednesday, after the online sports-betting and digital sports entertainment company said overnight that it is no longer pursuing the acquisition of Australia-based PointsBet Holdings Ltd.'s U.S. business. Earlier this month, DraftKings had bid $195 million in cash to buy PointsBets' U.S. operations, which at the time was 30% more than the $150 million Fanatics Betting and Gaming agreed to pay. But DraftKings' announcement Wednesday comes after PointsBet amended its buyout agreement with Fanatics to $225 million, or about 15% above DraftKings' bid. DraftKings' stock, which has rocketed 127.9% year to date, had closed June 13 at a 17-month high. In comparison, the S&P 500 has advanced 14.0% this year.

-Tomi Kilgore

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06-28-23 0706ET

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