Each day fantasy sports activities firm and bookmaker DraftKings is merging with a particular function acquisition firm, permitting it to develop i
Each day fantasy sports activities firm and bookmaker DraftKings is merging with a particular function acquisition firm, permitting it to develop into public whereas forgoing the standard IPO course of.
DraftKings is combining with Diamond Eagle Acquisition Corp., a SPAC with a market cap of roughly $500 million, and SBTech, a betting and gaming know-how firm. The businesses announced the deal Monday.
DraftKings CEO Jason Robins mentioned on CNBC’s “Squawk Box” that the corporate was trying to purchase SBTech and after which go public, or to go public first and make the acquisition later, however this construction allowed the 2 to be achieved in a single step.
“We thought of these two together with this, and this allowed us to be each on the similar level,” Robins mentioned.
The merger is anticipated to shut within the first half of 2020, in response to the announcement. As a part of the deal, Diamond Eagle will change its title to DraftKings and alter its ticker image that has not been introduced but. The corporate will commerce on the Nasdaq with an estimated market cap of $3.Three billion.
DraftKings and rival FanDuel gained reputation earlier within the decade for his or her each day fantasy sports activities merchandise, battling state regulators that argued they had been playing websites. The 2 corporations explored a merger however dropped the idea in 2017 following pushback from the Federal Commerce Fee.
Since a 2018 ruling by the Supreme…