BetMakers Technology Group Ltd (ASX: BET) shares have been having a tough week following the company's indicative proposal to acquire the wagering and media businesses of Tabcorp Holdings Limited (ASX: TAH). At the time of writing, the BetMakers share price has fallen 2.78% today to $1.05.
With today's slide included, the company's shares have slumped by 21.64% this week.
Let's take a look at what's been driving them lower.
BetMakers' acquisition proposal
BetMakers released its acquisition proposal last Friday morning, to the dismay of the market. BetMakers shares slumped by more than 15% on that day alone.
If accepted, the proposal would see BetMakers acquire Tabcorp's wagering and media business for $4 billion.
$1 billion would be paid in cash that BetMakers would get its hands on through debt financing.
The other $3 billion would be paid in new BetMakers shares – priced at a 15% premium to the BetMakers share price at the time of signing.
The acquisition would see Tabcorp shareholders given an approximate 65% interest in the merged BetMakers and Tabcorp wagering and media business.
BetMakers' strategic advisor Matt Trip commented on the proposal, saying:
I am excited by the potential opportunity to reinvigorate the Tabcorp Wagering and Media business. There is significant potential for the business to grow in partnership with BetMakers and I hope to get the opportunity to support the Australian racing industry which relies on the success and growth of TAB
Tripp's positivity hasn't quite translated to the market, which has pushed the BetMakers share price down nearly every day since the indicative proposal was released.
Tabcorp did acknowledge the proposal, though it hasn't responded further.
Tabcorp shares have ended the week not far from where they started – down 0.58% on last Friday's close.
BetMakers share price snapshot
Despite the poor performance of the BetMakers share price over the past week, it's still sitting around 55% higher than it was at the start of the year. It's also gained more than 180% since this time last year.
The company has a market capitalisation of around $845 million, with approximately 812 million shares outstanding.
