A DraftKings IPO is in the works, but it won’t be what investors typically expect.
Here’s what to know about the upcoming DraftKings IPO.
- Instead of going the traditional route for an IPO, DraftKings will go public via a merger.
- This will have it combining with Diamond Eagle Acquisition Corp. (NASDAQ:DEAC) and SBTech.
- Following the completion of this deal, Diamond Eagle will change its name to DraftKings.
- This will also have the company switching its stock ticker to a new one.
- It’s still unknown what the new stock ticker for DraftKings will be.
- What we do know is that co-founder and CEO Jason Robins will continue to lead the company after the DraftKings IPO.
- The new company will also retain the current leadership team at DraftKings.
- This includes co-founders Paul Liberman and Matt Kalish.
- The IPO already has a $304 million investment lined up from institutional investors once the deal is complete.
- When the deal reaches completion, the new DraftKings will have an equity market capitalization of $3.30 billion.
Here’s what Robins has to say about the unconventional DraftKings IPO.
“The combination of DraftKings’ leading and trusted brand, deep focus on customer experience and data science expertise and SBTech’s highly innovative and proven technology platform creates a vertically-integrated powerhouse. I look forward to building significantly upon our goals of continuing our state-by-state rollout and creating the most entertaining and engaging customer experiences for sports fans globally.”
As of this writing, William White did not hold a position in any of the aforementioned securities.