- Legal States
Rachael Price April 16, 2020 2 min read
DraftKings Going Public After Merger with SBTech and Diamond Eagle
DraftKings plans to become a public company as soon as the merger with SBTech and Diamond Eagle is completed.
DraftKings, SBTech and Diamond Eagle merger
Fantasy sportsbook DraftKings is awaiting an approval to go public following a discussed merger with SBTech and Diamond Eagle. Harry Sloan and Jeff Sagansky are leading the public acquisition. With a deal worth some $2.7 billion, the end result is expected to be “the first of its kind”, United States-based company for online gaming and sports bets.
This will effectively combine DraftKings, SBTech and Diamond Eagle. The reinforced DraftKings company will emerge under the name “DKNG”, however, this will be accomplished only after the deal has been completed in full. DKNG is expected to receive $500 million of cash dividends in order to start growing and the incorporation is planned to be in the state of Nevada.
The American Sports Betting Giant
The sports betting American giant DraftKings was founded in Boston by Jason Robins, Matt Kalish and Paul Liberman in 2011. The company started its first legal sportsbooks from New Jersey in August 2018, making DraftKings the first sportsbooks operator in the US outside the state of Nevada.
DraftKings offers both online and mobile sports betting in New Jersey, Pennsylvania, West Virginia, and Indiana. DraftKings also offers betting options at local retail locations available in New York, New Jersey, Iowa, and Mississippi. Upon completion of the deal, the plan is for Paul Liberman to keep his position as CEO. Co-founders Matt Kalish and Paul Liberman are expected to step in as senior managers in the new entity.
The Acquisition is Moving Forward as Planned
Yesterday, Harry Sloan who is leading Diamond Eagle Acquisition Corp. announced that the company is moving forward, following approval from the Securities and Exchange Commission (SEC). DraftKings CFO Jason Park commented on the same topic:
We are pleased that our registration statement was declared effective by the U.S. Securities and Exchange Commission this morning, which brings us another step closer to our goal of becoming a public company in April”.Harry Sloan, Diamond Eagle Acqusition Corp.
What comes next is a meeting, planned for April 23 that will include the shareholders of Diamond Eagle Acquisition Crop. who will vote on the merge with SBTech and DraftKings.