Billionaire Tilman Fertitta and DraftKings to Join Hands in a $1.6 Bn Deal.
DraftKings has reached a deal to acquire Golden Nugget Online Gaming in an all-stock deal at $1.56 Bn. This deal will give billionaire Tilman Fertitta more than $700 million worth of DraftKings stocks.
Houston-based billionaire Tilman Fertitta owns a 46% stake in Golden Nugget Online Gaming says that he won’t sell the shares anytime soon. Moreover, Fertitta has also joined a DraftKings board. The deal was announced on Monday and the shares of Golden Nugget jumped 55% after the news broke. As for DraftKings, their market share increased by 2%.
The merger of both gaming giants will exponentially expand the online casino games and iGaming. Moreover, this deal can also result in massive growth for fantasy sports betting, a domain where DraftKings is a huge player.
The CEO of DraftKings and Tilman Fertitta said in a joint statement, “Together, we can offer value to our combined customer base that is unparalleled. We believe that DraftKings is one of the leading players in this burgeoning space.”
Fertitta further added, “This transaction will add great value to the shareholders as two market leaders merge into a leading global player in digital sports, entertainment, and online gaming. Leveraging Fertitta Entertainment’s broad entertainment offerings and extensive customer database, coupled with Draft-Kings’ mammoth network makes this an unbeatable partnership.”
This deal will result in Draft-Kings taking leverage of more than 5 million customers of Golden Nugget. The deal is expected to complete by the Q1 of 2022. The agreement also states that the current stockholders of Golden Nugget will receive 0.365 shares of Draft-Kings Class A common stock.
Earlier this year, Fertitta Entertainment, which owns Golden Nugget, announced that it would go public with a valuation of $8.6 billion through a special purpose acquisition transaction.
Golden Nugget Online gaming operates in New Jersey and Michigan and offers live dealer blackjack and baccarat as well as slot machines.