The Boston-based company will go public through a reverse merger, under terms of a deal made last December with gaming technology provider SBTech and sports acquisition company Diamond Eagle Acquisition Corp., which is publicly traded. Diamond Eagle will change its name to DraftKings Inc. as part of the deal, as well.
The deal values DraftKings at $3.3 billion. Shareholders for Diamond Eagle will vote on April 23, which will be a continued meeting from an earlier one postponed due to the pandemic.
Diamond Eagle is what’s called a “blank check company” that raised $400 million for DraftKings in an initial public offering last May. As part of this deal, shares will be issued in the company’s DEAC Nevada unit as well.
Diamond Eagle is a special purpose acquisition company that was already publicly traded. That means DraftKings, by merging with it, can go public without going through a traditional initial public offering process.
The new, merged company will still be helmed by DraftKings CEO and co-founder Jason Robins, and the company will be based in Nevada alongside its initial base in Boston. The company also has offices in New York, New Jersey, San Francisco and Las Vegas.
Robins said he looks forward to…
Continue reading at PYMNTS.COM