DraftKings Inc. acquiring Golden Nugget Online Gaming Inc. for $1.56 Billion
DraftKings agreed to acquire Golden Nugget Online Gaming company shares. Golden Nugget will receive 0.356 DraftKings share. And they will be handled directly by the shareholders. 53% premium shares that will be given out. iGaming efforts are were on the waiting list for service boosting, and the DraftKings ecosystem may give just that. The deal will also bring 5 million new customers to DraftKings, which will require a significant scale expansion of volume for the company.
Sports betting online casino gaming are getting a boost as a result. DraftKings is hoping to reach a broader customer base along with the regular customers from the acquired company. The merger will expand sports wagering shares in addition to the U.S. traction. As more states are legalising the business, the company is hopeful as they raised revenue shares by a considerable margin from last year.
Billionaire Tilman Fertitta was backing up Golden Nugget and took the company public last year. He gave the company a blank check transaction for funding and expenses. Fertitta believes the industry is only growing as more states are legalising the business. The consolidation of merging with DraftKings is going to succeed in the long run. In an interview, he said, "DraftKings is best in class." He also said: "They're a tech company. We're a bricks and sticks company." Fertitta Entertainment Inc. is going to provide every necessary tool at its disposal to see DraftKings success.
Fertitta Entertainment Inc. is the parent company of Landry's restaurants and Golden Nugget casinos. The company will also provide an opportunity for online betting at Fertitta's patron's physical locations. Customer loyalty programs subscribers are going to enjoy the benefits.
Fertitta Entertainment Inc. also owns the Houston Rockets, basketball team. They will promote the company and its services. As wagers are becoming legal in Texas, there is a possibility of a sportsbook at the Toyota Center arena in Houston.
Golden Nuggets business relies on third-party providers. The technology they use is already implemented, and it is supposed to cover costs and business expenses. So once the merging is complete, along with the price, business revenues are coming in quickly. For a merger, it is a piece of great news and a matter of success. Fertitta owns a 46% stake at Golden Nugget Online Gaming Inc. He agrees to hold DraftKings share. Once the merger is complete, for a year, the shares are going to be issued to him directly, according to Bloomberg. Fertitta, in an interview, said, "There's another reason I wanted I to be an all-stock deal." Followed by "This is going to be a huge part of the Amirian economy." Online sports betting and gaming seem to have a bright future in some areas interested in the sector.
Last year Fertitta went through a GNOG deal with Landcadia Holdings II. There he acted as the co-chairman and chief executive. Fertitta will receive more than $700 million in DraftKings stock once the acquisition takes place. The shares owned by him grants 88% voting power in the companies he owns. A particular valuation took place for $8.6 billion through a special purpose of a company transaction. That helped him gain control over 72% of the company. Fertitta repurchased NBA's Houston Rockets in 2017 for $2.2 billion from another billionaire, Leslie Alexander. According to Forbes, the team is now worth more than the initial buying price, $2.5 billion. Last week Penn National Gaming bought Score Media, a Canadian company that owns theScore worth $2 billion. And Vici Properties acquired MGM company for $17.2 billion. The industry is quite hot at the moment and is only expanding shares.