DraftKings (NASDAQ:DKNG) stock is doing well on Tuesday after announcing it won’t be making a firm offer for Entain.
According to a press release from DraftKings, the company reached its current decision after “further analysis and discussions with the Entain board of directors.” This also submits it to restrictions under Rule 2.8 of the Code for the next six months.
Jason Robins, co-founder, chairman and CEO of DraftKings, said this about the news bumping DKNG stock higher today.
“After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time. Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”
Investors in DKNG stock seem to be in favor of it nixing a deal with Entain. On top of shares rising is heavier-than-normal trading. This has some 19 million moving as of this writing. That’s already above its daily average trading volume of 12.2 million shares.
Traders on Twitter are mostly reacting positively to today’s news.
Am I the only one who is relieved by this? $DKNG is still my fav bet on the convergence of betting, social media, gaming and metaverse. https://t.co/ssJk0LDjRR
— Chris (@IntrinsicThink) October 26, 2021
$DKNG No idea why that guy unloaded so many shares if he knew the deal was off. But glad it is and DKNG can get back to focusing on conquering the US first! $60 end of month! 🚩#DKNG #Bullish
— Programming Freaker (@ProgrammingFre5) October 26, 2021
@statsfundwill rumors of $DKNG acquiring $SBET after dropping Entain
— QuickBits (@QuickBitesInfo) October 26, 2021
DKNG stock was up 4.3% as of Tuesday afternoon and is up 8.8% since the start of the year.
There’s more stock market news for investors to sink their teeth into below!
InvestorPlace has all the latest stock coverage that traders need for Tuesday. A few examples of that include Tesla (NASDAQ:TSLA) price predictions, Wallbox (NYSE:WBX) stock running higher, as well as Redbox (NASDAQ:RDBX) stock getting a boost. You can get more details of that from the links below!
More Stock Market News for Tuesday
- TSLA Stock Price Predictions: How High the Pros Think Tesla Shares Could Go
- WBX Stock: The ‘Zero-Emissions’ Uber Deal That Has Wallbox Charging Higher Today
- Redbox IPO: What RDBX Stock Investors Are Saying Following Yesterday’s Red-Hot Debut
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
