Report: Stake co-founders build up minority shareholding in PointsBet
Local media report Ed Craven and Bijan Tehrani have snared more than 4% of business in the last month
Stake co-founders Ed Craven and Bijan Tehrani have built up a minority stake in PointsBet, according to local reports.
As published by the Australian Financial Review, the duo have spent the past month building a combined 4.2% share in the ASX-listed operator.
The pair reportedly acquired the stake through the Easygo brand, the tech company they founded that powers Stake and its sister streaming site, Kick.
PointsBet is now fully focused on the Australian and Canadian markets after selling its US-facing arm to Fanatics earlier this year for $225m.
In fact, CEO Sam Swanell said on a recent investor call that he was confident the firm could soon sew up a 5% market share in Australia.
PointsBet has a current market cap of A$234m after seeing its stock slump by 50% since 1 January.
Based on the group’s market cap, this would put the pair’s stake in the business at A$9.8m.
The move to invest in PointsBet comes following Stake’s regulated push in Latam.
The operator acquired the local Betfair business from Flutter Entertainment for an undisclosed fee in what will be seen as a major step change for the firm.
Stake is now authorised to run a legal site in Colombia until 2025 after gaining approval from the local regulator.
The operator is also planning to enter into the regulated Paraguayan and Mexican markets, as well as keeping an eye on a potential Brazilian move, regulation permitting.