Draftkings Will Buy Golden Nugget Online For $ 1.56 Billion
The stormy wave of mergers and acquisitions in the gaming industry continued on monday, when draftkings agreed to acquire golden nugget online gaming for $ 1.56 billion in promotions .
Shareholders of golden nugget online will receive 0.365 shares of draftkings, which means 53% award to the price of the closing of golden nugget online shares on friday.
Golden nugget online shares rose on this news by almost 48%, while draftkings shares remained relatively unchanged after the transaction announcement. The market capitalization of draftkings is $ 20.68 billion.
The ceo of golden nugget online tilman fertitta owns 47% of business, which was formed as a result of separation from golden nugget for sports games and igaming. The billionaire stated he would continue to own the shares of the new company at least within a year after the closing of the transaction. Fertitta will also join the draftkings board.
Transaction gives draftkings access to 5 million customers golden nugget online, which are reliable online casino players. The gaming industry expects customers who make bets in online casino games will be crucial for the growth of its income in the future. Firth and others believe that igaming customers are seven times more expensive customers doing sports rates.
At the draftkings telephone conference, dedicated to the second quarter, ceo jason robins said that igaming makes it possible to diversify the company’s offer outside sports seasons. Nevertheless, he struggles to attract customers to his casino game platform.
"In the igaming segment, we definitely feel that we have better work with people whe are sport fans that we can carry out cross-selling and we worked a lot to try to expand our brand and expand our presence on igaming, which is not a sports fan. Audience, – said robins.
Draftkings expects saving $ 300 million from the transaction, as it includes a platform and technology inside the company, reduces the commission to third-party suppliers and reduces marketing expenses. The company will be able to draw attention to promotion and marketing in the restaurants of fertitta’s houston rockets, landry’s and the usual casino golden nugget.
"The use of a wide range of fertitta entertainment entertainment offers and an extensive customer database in combination with a giant network draftkings makes it unsurpassed," the firthtite states. "Together we can offer a unique value for our united customer base".
The sale was the only option for golden nugget online, as it takes a significant market share in new jersey and "has no balance for competition," said the analyst of the game industry, who wished to remain unknown, since the did not aproval. Talk under the protocol.
Draftkings seeks to diversify its income beyond fantasy sports and sports rates. He concluded transactions with sports bars, launched a trading platform for indispensable takens and collaborated with genius sports data provider. Genius sports partnership provides draftkings official nfl data, as well as various other sports and streaming possibilities.