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BuzzSaw 12
Georgia Tech Fan
The ATL
Member since Dec 2010
1966 posts

Draft Kings
Variety

quote:

Sports betting giant DraftKings has been cleared to become a public company following approval of a merger with SBTech and Diamond Eagle Acquisition, the public acquisition vehicle headed by industry veterans Harry Sloan and Jeff Sagansky.


quote:

Diamond Eagle Acquisition Corp., led by Sloan, announced Wednesday that it had received the approval from the Securities and Exchange Commission and is now moving to the final step in the process. An April 23 meeting has been scheduled for DEAC shareholders to vote on the business combination with DraftKings and SBTech.


quote:

The deal is valued at $2.7 billion. Diamond Eagle will combine with DraftKings and SBTech to create what’s described as the only vertically integrated U.S. sports betting and online gaming company. Upon conclusion of the deal, the new DraftKings will become a publicly traded company under the new symbol of “DKNG” and become incorporated in Nevada. The new company will have more than $500 million of unrestricted cash to ensure access to capital to fuel growth.


Diamond Eagle trades as DEAC at the moment. The new ticker symbol once the merger is completed will be DKNG.

Given the popularity of fantasy leagues and the growth in sports betting with the blessing of professional sports leagues this might be a good longer term lotto play. Anyone thinking about getting into this name?


WB504
New Orleans Saints Fan
New Orleans
Member since May 2008
5069 posts

re: Draft Kings
Bought a few shares at $11. May try to buy a few more before the name change.


Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
36884 posts

re: Draft Kings
Posting to keep an eye on. I think I’ll see what the new ticker opens all at first.


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beenHADdat
LSU Fan
Port Allen, LA
Member since Sep 2011
421 posts

re: Draft Kings
if you already own stock with DEAC, do i need to do anything to move my money over to DKNG? or am i just going to wake up one day and see that the DEAC ticker has changed to DKNG? probably a stupid question but im new to this.


Jwodie
LSU Fan
New Orleans
Member since Sep 2009
7023 posts

re: Draft Kings
quote:

or am i just going to wake up one day and see that the DEAC ticker has changed to DKNG?


This


Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
36884 posts

re: Draft Kings
Would it open at same exact price/trading history?


castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
67949 posts

re: Draft Kings
Yes.


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dj30
New Orleans Pelicans Fan
New Orleans
Member since Feb 2006
26640 posts

re: Draft Kings
How should I look at a stock like this? Should I compare it to something like Penn gaming or MGM?

DEAC is priced higher than both of these currently. Trying to figure out if this is a good buy.

Eta:Yes Im new to this.
This post was edited on 4/21 at 8:55 am


JescoWhite
LSU Fan
Ripped Out Of The Frame
Member since Jul 2011
499 posts

re: Draft Kings
Curious about this too, though Draft Kings seems somewhat unique based on its accessibility from a mobile perspective.

ETA: I would also presume much lower overhead for the same reason - a mobile app vs sprawling campuses for casino properties, though hotels, alcohol, entertainment etc represent alternative revenue streams.
This post was edited on 4/21 at 10:58 am


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10
BuzzSaw 12
Georgia Tech Fan
The ATL
Member since Dec 2010
1966 posts

re: Draft Kings
I think this is a one of kind type of investment until others come along. Casinos are a tough comparison unless you could put a valuation on just their sports books. Probably a more speculative investment than most. I just feel like with the explosion in popularity of fantasy sports and the ease you will have to bet on just about anything sports related including prop bets in the middle of a game the potential is there for DKNG to take off. They've got a lot of money behind them.

I'm watching DEAC for a pullback. Not planning on a big investment. Small to start and see how it progresses.


Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
36884 posts

re: Draft Kings
Yeah I’m still watching and waiting too. Going to grab some at some point. It’s been hovering around 17 since I added it within the last week.


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HarrisonTown
LSU Fan
Member since Nov 2019
126 posts

re: Draft Kings
quote:

or am i just going to wake up one day and see that the DEAC ticker has changed to DKNG? This


DKNG at market open tomorrow, I believe.


Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
36884 posts

re: Draft Kings
Looks like DKNG is live. It didn’t transfer it’s just a brand new ticker


JescoWhite
LSU Fan
Ripped Out Of The Frame
Member since Jul 2011
499 posts

re: Draft Kings
DEAC shares didn't transfer? It seemed to open at the same price. Interesting, though I admittedly know nothing about this


Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
36884 posts

re: Draft Kings
Oh I don’t know, I haven’t bought in yet. It went up 20% and came back down, up about 9 right now. I want to see what it does early next week. I bet today being the first day was the overexcitement factor but with no sports to bet on I see it coming back to reality


Cajun9474
Member since Apr 2020
4 posts

re: Draft Kings
Yes it transferred from DEAC. I’m in it 500 shares rn


JescoWhite
LSU Fan
Ripped Out Of The Frame
Member since Jul 2011
499 posts

re: Draft Kings
Bumping this - looks like they rolled out mobile sports betting in CO and an online casino in PA in recent days, but not a lot of pop. I guess we won't know much about potential until we have sports again


BuzzSaw 12
Georgia Tech Fan
The ATL
Member since Dec 2010
1966 posts

re: Draft Kings
I keep hoping this will drop back into the 15-17 area where I feel more comfortable buying but barring a broader market pull back that may not happen. I figure once major pro sports announces a plan to return it will shoot up.


JescoWhite
LSU Fan
Ripped Out Of The Frame
Member since Jul 2011
499 posts

re: Draft Kings
Same here, I was thinking ~$18, but it doesn't seem to want to go much lower than $19-20. I may jump in if it gets below $20 again. There seems to be potential, just based on a unique business model.


LSUregit
LSU Fan
Member since Dec 2013
1328 posts

re: Draft Kings
I missed this one but may get into GAN. Ipo today.


- I'm in
This post was edited on 5/5 at 10:58 am


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