76.8 F
New York
Saturday, July 2, 2022

Golden Nugget [NASDAQ: GNOG] to be Acquired by DraftKings

Must read

Golden Nugget Online Gaming Inc. [NASDAQ: GNOG] has inked a definitive agreement with DraftKings Inc. [NASDAQ: DKNG]. As per the agreement, Golden Nugget Gaming Online is to be purchased by DraftKings in an all-stock transaction. This deal will provide great value to the investors as two market leaders combine into prominent global players in digital sports, entertainment, and online gaming.

3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free.


DraftKings anticipates seeing a revenue boost from extra cross-promotion opportunities. It will grow the firm’s customer base by involving a loyal gaming-first customer. Additionally, there are expected revenue collaborations through potential technology and game expansion, plus Live Dealer offerings.

Strategic Rationale

The purchase of Golden Nugget Online Gaming will provide substantial strategic advantages to DraftKings as well as anticipated synergies of $300mm at maturity. DraftKings will implement a multi-brand strategy that will improve cross-sell opportunities and drive expanded market share and revenue growth. Moreover, the all-stock deal protects the balance sheet of DraftKings and puts up the long-term activities of both brands and shareholders.

As per the agreement, DraftKings will undertake a holding company reorganization. The firm will form a new holding corporation New DraftKings. Hence, the firm is set to become the going-forward public enterprise for both DraftKings and GNOG. New DraftKings shall be designated as the DraftKings Inc. at execution.

Transaction Details

In addition to this, Golden Nugget Online Gaming stockholders would get a fixed ratio of 0.365 shares of New DraftKings’ Class A Common Stock for each Common Share of Golden Nugget Online Gaming they hold on to the record date. DKNG will spend has nearly $1.56 billion to purchase Golden Nugget Gaming.

The deal is dependent on the authorization of Golden Nugget Online Gaming stockholders. Moreover, it will also base on the receipt of the necessary regulatory authorization and other traditional closing terms. The deal is anticipated to execute in the first quarter of 2022.

More articles

Latest article



Download Free eBook For

The 5 Best Growth Stocks 2022

100% free. stop anytime no spam