Sports Betting giant Draftkings announces a gigantic mega-deal worth over $3B Plus.
Draftkings announced that in the early part of 2020 they are taking their sports betting company, and going public. They have signed a huge deal with the acquisition firm Diamond Eagle and SBTech which is a sport betting technology company. The deal will net the DraftKings over $3.3 billion dollars. It’s the biggest deal of its kind in the entire sports betting industry.
DraftKings also was able to get new investment money from three major players in the field. A total of $300 million in new investment money was procured from Franklin Templeton, Capital Research and Management and Wellington Management. The co-founder and current CEO of DraftKings Jason Robins will be in charge of the company’s debut on the Nasdaq exchange. SBTech will stay on with DrafKings in an advisory capacity after the sports betting giant goes public.
This Deal Will Enable DraftKings The Only Vertically Integrated Sports Betting Company
Harry Sloan a managing partner of Diamond Eagle, said that before this deal DraftKings was the premier sports betting company already. Sloan said on Monday, “With the full integration of SBTech’s technology and innovative product expertise coupled with the right capitalization, DraftKings will be in the position to continue it’s ambitious expansion plans in the United States.” DraftKings first dipped into the industry with daily fantasy sports in 2012. They immediately became a force to be reckoned with. They staked their claim and was the company that had their eye on the prize from day one.
DraftKings maintains over 60% of the fantasy sports industry, That encompasses their platform in 43 states and eight international markets, according to company data that was released on Monday. Since the Supreme Court overruled a sports betting ban in 2018, 13 states have sports betting up and running. Several other states have sport betting bills on the legislative agendas for 2020. DraftKings was contemplating a merger with Fanduel in 2016.
DraftKings CEO Jason Robins Said Everything Happens In Time For A Reason
The deal was nicked by antitrust regulators before any type of merger could go through. DraftKings CEO Jason Robins said ‘on Monday of the prior attempted merger, it didn’t go through for a reason, and now we are on to bigger and better innovative movements.’ After DraftKings rolls out its debut on the Nasdaq in 2020, the company co-founders will continue to work as a team Robins said.
Robins, Matt Kalish and Paul Liberman, lifelong friends from the Boston area founded the company in 2012. In under eight years Robins said ‘we have been able to do things in the industry, that even we thought would be far reaching. We never got distracted and always focused on our beginning goals and stuck with the plan, and it’s paid off.’
The new year could bring winners and losers when companies go public. This year, there have been a few big companies that had to back peddle after going public like Uber. Robins and his team remain optimistic. We never say ‘this is it, there is always a lot more that has to be done.’