Stunning deal and any new buyer gets to participate in the...

Stunning deal and any new buyer gets to participate in the upcoming share/option offer that are already in the money. How good is that.

the deal itself is beneficial to both parties:

The Terms Of The Deal

The high-level terms of the deal are as follows:

• PointsBet will become the official sports betting partner of NBC Sports in the US;
• This media-partnership has an initial term of 5 years;
• PointsBet will commit to spending US$393m (~A$540m) in marketing expenses on NBC’s US media channels over the next 5 years;
• This cost will be offset by NBC buying a 4.9% stake in PointsBet at $6.50 per share (NBC will be issued new shares). Based on the current share count, that would amount to ~A$49m but it may end up being higher as more PointsBet shares are issued;
• The marketing cost will also be further offset by NBC buying 66.88m options to buy more PointsBet shares. These options have a 5-year term and are exercisable at a price of A$13 per share;
• If all the options are exercised on a cash settlement basis, the company would receive further funding of ~A$870m. In such a scenario, the bulk of this would be offsetting company’s marketing costs;
• NBC may elect not to exercise the options, in which case they would receive a refund on the current options’ value of ~A$105m. This would likely happen if, after 5 years, the PointsBet share price is trading below the options exercise price of $13;
• PointsBet will simultaneously undertake a rights offer which could raise up to $300m in funding.