- DraftKings and SBTech acquisition by Diamond Eagle Acquisition Corp. has been approved by shareholders.
- This brings the company one step closer to being a publicly-traded company.
- The final phase is the actual business combination being completed, this has not been given a set date as of yet.
BOSTON, Mass. - DraftKings has gotten one step closer to becoming a publicly-traded company as the shareholder meeting on Wednesday led to the approval of the merger with SBTech. The sportsbook and sportsbook technology supplier will be acquired by Diamond Eagle Acquisition Corp (DEAC) in a deal valued at $2.7 billion.
DraftKings will gain the biggest cut of the deal, hauling $2.055 billion in both cash and stocks. The DEAC will also be funding other cash considerations, including private placements of Class A stock. The deal has also been approved by the Securities Exchange Commission.
The deal is not over yet, as now the only step necessary is for the companies to officially merge. A date has not yet been set for the merger.
DraftKings Going Public
The deal to merge DraftKings with SBTech has been in the works for some time. The shareholder meeting was one of the final hurdles needed to make things official.
The resounding approval from the shareholders shows that the future of the deal is a bright one. This will make DraftKings one of the largest sportsbooks and DFS providers in the world.
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According to the prospectus, the shareholders unanimously approved of the deal that is worth 50,000,000 shares of Class A. It is estimated that of the projected $18 billion in sports betting revenue, DraftKings will take in between $2.9 billion and $4.7 billion annually.
DraftKings DFS product is currently available in 43 states giving them the lead in that market as well.
The future of online sportsbooks is only getting bigger with DraftKings going public. The sky is really the limit for them in the sports betting world.
After graduating from Florida State University with a degree in creative writing, Giovanni spent his professional career writing short stories for online journals. Now at USAOnlineSportsbooks, you can find him keeping fans up to date on their favorite teams best betting odds. Giovanni still tries to incorporate his passion for storytelling through the perspective of sports betting.
