DraftKings to buy online gaming peer Golden Nugget for about $1.56 bln

DraftKings said it plans to leverage Golden Nugget's iGaming product experience and existing combined database of more than 5 million customers. Both companies went public through special purpose acquisition companies or SPACs. Golden Nugget's parent company Fertitta Entertainment Inc, owned by Billionaire Tilman Fertitta went public in February, while Draftkings went public in April last year.

Sports betting company DraftKings Inc said on Monday it would buy online gaming firm Golden Nugget Online Gaming Inc for about $1.56 billion in an all-stock transaction.

As part of the deal, DraftKings said it will form a new holding company called New DraftKings, which will be treated as the going-forward public firm for DraftKings and Golden Nugget. DraftKings said it plans to leverage Golden Nugget's iGaming product experience and the existing combined database of more than 5 million customers.

Both companies went public through special purpose acquisition companies or SPACs. Golden Nugget's parent company Fertitta Entertainment Inc, owned by Billionaire Tilman Fertitta went public in February, while DraftKings went public in April last year. (https://reut.rs/3lHwPDr)

If a deal comes through, Golden Nugget shareholders will receive 0.365 shares of New DraftKings' stock for each share held. The transaction is expected to close in the first quarter of 2022.

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