- The directors and managers of Draftkings, SBTech, and Diamond Eagle Aquisition Corp. have approved the combining of their businesses.
- The completion of the combination is expected to close by the first half of 2020.
- The corporations are going to offer mobile sports betting across the U.S.
BOSTON – DraftKings, a company that is known for its daily fantasy sports and mobile sports betting platforms, has entered into a historic agreement with Diamond Eagle Acquisition Corporation.
Diamond Eagle is a publicly-traded company with the purpose of acquiring and merging other companies. Under the terms of the deal, DraftKings and SBTech will be merging technologies and operate under the umbrella of Diamond Eagle.
The soon to be intertwined companies will be integrated into the first sports betting and online gaming company based in the United States to be vertically integrated and to go public.
With its headquarters currently located in Boston, DraftKings also has offices across the country which include New York, New Jersey, Las Vegas, and San Francisco.
When Diamond Eagle was founded, it was founded with a goal to create mergers, purchase stock, acquire assets, exchange capital stock, and reorganize or combine businesses with similar businesses. With this deal, Diamond Eagle has accomplished multiple goals.
This deal is expected to close in the beginning of 2020. Diamond Eagle will then change its name to DraftKings Incorporated.
Jason Robins, co-founder and the CEO of DraftKings said to in a press release, “The combination of DraftKings’ leading and trusted brand, deep focus on customer experience and data science expertise and SBTech’s highly innovative and proven technology platform creates a vertically-integrated powerhouse. I look forward to building significantly upon our goals of continuing our state-by-state rollout and creating the most entertaining and engaging customer experiences for sports fans globally.”
The new corporation will continue under the leadership of Robins and will keep on its current management team. Investors of the new corporation have committed to a $304 million investment. Diamond Eagle currently has $400 million in its trust account.
It has been anticipated that the blended companies will achieve an equity market capitalization at a closing amount of about 3.3 billion and will be sitting on more than $500 million of unrestricted cash.
Shamiya is a sports content writer with a focus mainly in news. She is a highly experienced published writer and a recent college graduate. She has written for several publication companies like The Herald and The FAMUAN, all in news. In her free time, she enjoys spending time with family, reading blogs and online shopping.