According to an announcement made on Monday, DraftKings intends to Finish 2 Mergers by 2020. In the last few months, several rumors and speculations have been going around the sports betting software industry. However, the announcement has made it a reality as DraftKings Intends to Finish 2 Mergers by 2020.
The merger between SB Tech and DraftKings will create a powerhouse in the gambling industry. This is because this is the combination of a leading sports betting brand and a gambling platform company. In addition, a second merger will take place next year with Diamond Eagle Acquisition Corporation.
Technically, it is not a merger but an acquisition by Diamond Eagle Acquisition who is already a publicly traded company on the NASDAQ exchange. However, after the merger the three companies will go under the DraftKings name and have a new ticker symbol.
DraftKings Going Public
According to Pay Per Head analysts, the merger will give the new company a value of $3.3 billion. In addition, they will have $500 million available once the deal is done. The interesting part off this merger is that they will become a public company without going thru an IPO. This is because they are merging through a special purpose acquisition method. Thus, the DraftKings will basically be taking over the publicly-traded status of Diamond Eagle Acquisition.
After the merger, DraftKings CEO, Jason Robins will remain in charge along with Paul Liberman and Matt Kalish. In addition, they will reincorporate the company in Nevada but still keep their headquarter in Boston, MA.
Details as to what will happen to the SB Tech management team have not yet been made available. However, they will give them out next year once the merger is over.
The merger of all of the companies will allow DraftKings to create new products and expand into new gambling markets. Furthermore, it will drastically decrease the risks of operation by both DraftKings and SB Tech.
At the moment, DraftKings is also using Kambi as their betting software provider. After the merger, they will no longer have to rely on third-party as they will have their own in-house technology.