Value: US$393 million.

Deal: Baker McKenzie has advised PointsBet Holdings on its five-year, US$393 million US media partnership with NBCUniversal Media involving the sale of an equity stake in their business.

Area: M&A, media and telecommunications.

Key players: On the equity sale to NBCUniversal, PointsBet was advised by the Sydney Baker McKenzie team of Lance Sacks, Antony Rumboll and Eric Li. 

Mark Mandel and Michelle Heisner in Baker McKenzie’s New York office led advice to PointsBet on the media deal along with Andrea Tovar (gaming regulatory) from the San Francisco Baker McKenzie office and Pamela Church and Josh Wolkoff (intellectual property) from the New York Baker McKenzie office.

Deal significance: Baker McKenzie’s New York office led the work on the US media partnership. Under the five-year, US$393 million arrangement with NBCUniversal, PointsBet will make media buys across certain of NBCUniversal’s digital and linear media platforms and have certain exclusive rights to promote its services through agreed pre-game, post-game and in-game promotional enhancements and integrations in NBCUniversal's broadcasting and digital platforms.

Baker McKenzie’s Sydney office spearheaded work related to NBCUniversal’s 4.9 per cent strategic equity stake in PointsBet. This initial shareholding coupled with additional options which, upon exercise, would give NBCUniversal a total shareholding of 27 per cent. 

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“Given the importance of this landmark partnership for our growing business, it was comforting to know we were well supported by a leading global law firm (Baker McKenzie) – across multiple jurisdictions – to deliver what was a truly transformative outcome,” PointsBet Holdings’ group general counsel, Andrew Hensher stated.

The value of the securities is being used to offset PointsBet’s payment obligations under the media arrangement and will reduce the overall cash commitment across the five-year term.

“We are pleased to have assisted PointsBet in securing this strategic media partnership with such a prominent US media brand. The seamless collaboration between the Australian and US teams allowed us to successfully deliver a positive outcome, in what is a key milestone for the PointsBet business,” Mr Sacks, who led the equity and M&A deal component of the transaction said.

When asked, exactly how significant this partnership is for PointsBet, Mr Mandel, who led the media deal added that this “is a transformational partnership with one of America’s most iconic media brands that is intended to accelerate growth in the United States.” 

“The significance of this deal cannot be understated,” he said.

PointsBet is an ASX-listed corporate bookmaker with operations in Australia and the US. PointsBet has developed a scalable cloud-based wagering platform through which it offers its clients innovative sports and racing wagering products. 

NBCUniversal is one of the largest and most respected national media networks in the US. The network has the largest sports audience of any US media company, with over 184 million viewers, which covers 85 per cent of the US sports betting viewership.