Following a three-way merger, the famous sports fantasy and online sports betting company DraftKings has gone public. The merger was with Diamond Eagle Acquisition Corp. and SBTech Global Ltd. DraftKings received the green light to start trading as DKNG on Friday, April 23. The initial market value is estimated to be $3.3 billion. This figure was released by the Wall Street Journal. Jason Robins is one of DraftKings con-founders. He will maintain his role as CEO to take the lead in this venture. He will also act as chairman of the board.
Since When is DraftKings Sportsbook Trading Publicly On The Nasdaq Global Select Market?
The company’s executive group will also remain intact. This includes Paul Liberman and Matt Kalish as two other co-founders. Mr. Kalish is the president of the company’s North American Division. Mr. Liberman is the president of global technology and product.
Diamond Eagle’s principal is Harry Sloan. He made his fortune as a former movie studio executive. SBTech Global Ltd is based in the gambling technology industry. The new company’s chief legal officer will be R. Stanton Dodge. Jason Park will hold the title of chief financial officer.
The timing of this move is interesting amid the current coronavirus outbreak. Live sports have basically been ground to a halt. This has had a major impact on the sports betting business as well. DraftKings got its start in the daily sports fantasy business. More recently, it entered the online sports betting industry through partnerships with land-based casinos and sportsbooks.
The company’s popular sports betting platform has enjoyed tremendous success in certain states with legal sports betting.
Most notably, New Jersey and Nevada. DKNG opened trading on Nasdaq with an initial share price of $20.49. Jason Robins released the following statement: “Today marks another milestone for DraftKings and the future of digital sports entertainment and gaming in America. By bringing together our leading 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.”
Back in December, DraftKings agreed to a merger with Diamond Eagle as a blank-check acquisition company. Sloan is joined by Jeff Sagansky, who was also in the movie business. This deal raised the new company’s market value to the $3.3 billion level. When SBTech joined the duo as the third partner, the new balance sheet had an estimated $500 of unrestricted cash.
As the live sports shutdown continues, the NBA and NHL are looking for ways to salvage their season. The new MLB season has yet to start. Suddenly, there are some genuine concerns for the NFL season set to start in early September.
Interesting Article: eSports Betting Starts To Make Its Mark in Online Sports Gambling Industry.
DraftKings employs around 2,300 people on a global scale. The company headquarters will remain in Boston. There are other US-based operations in:
- Hoboken, NJ.
- Las Vegas
- New York
- San Francisco
The list of international locations include Dublin, Kyiv, Plovdiv, Sofia and Tel Aviv.
• Source: Online sports-betting operator DraftKings to begin trading on the Nasdaq Friday From Marketwatch.com On April 23, 2020.