Daily fantasy sports and betting provider DraftKings will begin trading as a public company after completing a three-way merger with gaming technology specialists SBTech and investment firm Diamond Eagle Acquisition Corp (DEAC).
The deal, which was first announced in December, was given the green light on 23rd April by DEAC’s shareholders, creating what DraftKings described as the only US-based ‘vertically integrated pure-play sports betting and online gaming company’.
Starting 24th April, DraftKings will become a publicly traded company, operating on the Nasdaq stock exchange under the ticker symbol ‘DKNG’.
The merger values the new combined company at US$3.3 billion and allows DraftKings to begin public trading without holding an initial public offering (IPO). It will also have US$500 million in unrestricted cash once the transaction closes.
Boston-based DraftKings, which employs approximately 2,300 people worldwide, will continue to be led by co-founder and chief executive Jason Robins, as well as its wider management team.
“Today marks another milestone for DraftKings and the future of digital sports entertainment and gaming in America,” said Robins. “By bringing together our leading consumer brand, data science expertise and industry-leading products with SBTech’s proven technology platform, we will accelerate our innovation, growth and scale.
“I am confident that the new DraftKings will progress our goal of offering the best, most innovative sports and gaming products to our customers.”
The deal comes with almost no live sport to bet on with most leagues and events around the world suspended, cancelled or postponed due to the coronavirus pandemic.
DraftKings has established itself as one of the major players in the fledgling US sports betting market since the country relaxed laws around placing wagers on sporting events in May 2018. The company operates sportsbooks in New Jersey, New York and Mississippi, and offers its online betting services in several other states.
Daily fantasy sports and betting provider DraftKings will begin trading as a public company after completing a three-way merger with gaming technology specialists SBTech and investment firm Diamond Eagle Acquisition Corp (DEAC).
The deal, which was first announced in December, was given the green light on 23rd April by DEAC’s shareholders, creating what DraftKings described as the only US-based ‘vertically integrated pure-play sports betting and online gaming company’.
Starting 24th April, DraftKings will become a publicly traded company, operating on the Nasdaq stock exchange under the ticker symbol ‘DKNG’.
The merger values the new combined company at US$3.3 billion and allows DraftKings to begin public trading without holding an initial public offering (IPO). It will also have US$500 million in unrestricted cash once the transaction closes.
Boston-based DraftKings, which employs approximately 2,300 people worldwide, will continue to be led by co-founder and chief executive Jason Robins, as well as its wider management team.
“Today marks another milestone for DraftKings and the future of digital sports entertainment and gaming in America,” said Robins. “By bringing together our leading consumer brand, data science expertise and industry-leading products with SBTech’s proven technology platform, we will accelerate our innovation, growth and scale.
“I am confident that the new DraftKings will progress our goal of offering the best, most innovative sports and gaming products to our customers.”
The deal comes with almost no live sport to bet on with most leagues and events around the world suspended, cancelled or postponed due to the coronavirus pandemic.
DraftKings has established itself as one of the major players in the fledgling US sports betting market since the country relaxed laws around placing wagers on sporting events in May 2018. The company operates sportsbooks in New Jersey, New York and Mississippi, and offers its online betting services in several other states.
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