DraftKings to Go Public in Three-Firm DealDraftKings, the Boston-based fantasy sports and betting platform, has agreed to be combined with a technology firm and become a public company as part of a three-firm deal that would create a company valued at $3.3 billion and position it as a major player in the world of online wagering.
Diamond Eagle Acquisition Corp. plans to combine DraftKings and SBTech, a sports betting and online gaming tech company, to create "the only vertically-integrated pure-play sports betting and online gaming company" in the United States, the companies said in a release announcing their "definitive business combination agreement" Monday.
Here's how the deal, which is slated to close in the first half of 2020, is expected to unfold: A Diamond Eagle subsidiary called DEAC NV Merger Corp. will file a registration statement with the Securities and Exchange Commission ahead of a meeting of stockholders to approve the proposed combination. At closing, DEAC NV Merger Corp. will rename itself DraftKings Inc., reincorporate in Nevada and remain Nasdaq-listed under a new ticker symbol.
DraftKings co-founder and CEO Jason Robins will lead the "new DraftKings," as the companies referred to the proposed merged company, and the current DraftKings management team will retain their current roles with the new company.
"DraftKings is already a premier online fantasy sports and betting platform. With the full integration of SBTech's technology and innovative product expertise coupled with the right capitalization, DraftKings will be in a great position to continue its ambitious expansion plans in the United States," Diamond Eagle founding investor Harry Sloan said.
On CNBC, Robins said the combined company expects about $540 million in revenue next year and that its primary focus will be the United States "because really what we see is a market that's going to be rapidly developing."
