In the world of corporate bookmaking, only the very big make a reasonable return. BET365 is the standout. Betr and MT are well aware that unless they can scale up, they will never deliver a decent return on shareholder equity. WAM is not a stupid investor and is close to the Betr Board, so they know the big picture scenario as well. I suspect Betr will be very reluctant to give up on its PBH aspirations, as the combined size of the two entities is the path to modest profitability. More importantly, index inclusion which would lead to a higher share price, given the stock's current underownership, and an eventual takeover by a larger player. The end game is being taken out at a higher price. It's a big gamble, but that's what these guys love. They will patiently spend shareholder funds building a barely profitable business, earning fat salaries, and waiting for the inevitable bid.
BBT Price at posting:
30.3¢ Sentiment: None Disclosure: Not Held
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