DraftKings, a daily fantasy sports and bookmaker, is merging with Diamond Eagle Acquisition Corp. and SBTech, to become a public company. Because the merger includes a special purpose acquisition company, DraftKings will become public and avoid the standard IPO process.
The new merger was announced on Monday. With DraftKings combining with the two companies. The merger should close by the first half of next year and as part of the deal, Diamond Eagle will change their name to DraftKings as well as their ticker symbol.
Jason Robins, the CEO of DraftKings, stated that the company was in the market to acquire SBTech and go public. They had also considered going public first and then making the acquisition with the betting and gaming technology company. With this deal structure, they were able to do both.
Robins added that they considered the two along with this and it allowed them to be both at the same point.
SB Nation Partnership:
Along with this most recent acquisition, DraftKings has been busy signing other deals. In September, the brand announced a partnership with Vox Media’s SB Nation. The partnership includes a multi-year editorial and technology deal, creating the new DraftKings Nation.
The newly created media property started with a focus on the 2019 NFL season. It will expand to other sports in the future, including the NBA and MLB. The new DraftKings Nation combines the community-building features of SB Nation along with the sports betting brand’s insight into how fans engage and enjoy the sports they love.