DraftKings set to acquire GNOC for $1.56 billion in stock
DraftKings is acquiring Golden Nugget Online Gaming (GNOG) in a $1.56 billion all-stock deal that could, potentially, open the DraftKings brand to an older demographic. The deal will also put around $700 million worth of DraftKings shares into the portfolio of GNOG chairman and chief executive Tilman Feritta.
Under the terms of the deal, DraftKings will be paying out 0.365 newly issued shares for every current share of GNOG. That’s an extremely good deal for Feritta, who currently owns 46 percent of all GNOG shares and will be adding around $700 million to his assets. As part of the agreement, Feritta will both hold on to those shares for a full year and join the DraftKings board.
ason Robins, DraftKings’ CEO and Chairman of the Board commented on the deal on the company’s website saying, “Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers.”
Tilman Fertitta, Chairman and CEO of GNOG was similarly enthused saying, “Leveraging Fertitta Entertainment’s broad entertainment offerings and extensive customer database, coupled with DraftKings’ mammoth network makes this an unbeatable partnership. 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 and couldn’t be more excited to lock arms with Jason and the DraftKings family across our entire portfolio of assets, including the Houston Rockets, the Golden Nugget casinos and Landry’s vast portfolio of restaurants. This is a strong commercial agreement for both companies.”
The DraftKings, GNOG deal is subject to approval both by DraftKings shareholders and regulatory authorities. Those approvals are set to be finalized by the beginning of 2022.