In connection with the acquisition, DraftKings has entered into a commercial agreement with Fertitta Entertainment, the parent company of the Houston Rockets, Golden Nugget, LLC and Landry’s LLC, and a leader in the gaming, restaurant, hospitality, and sports entertainment industry.
DraftKings will pay 0.365 newly issued shares for each common share of Golden Nugget Online Gaming.
GNOG’s chairman, chief executive and largest shareholder, Tilman Fertitta, who owns approximately 46% of the business, has agreed to continue to hold the DraftKings shares he will receive – worth more than US$700m – for at least a year.
Fertitta, who will continue to own the Golden Nugget land-based business, will also join the DraftKings board.
Subject to regulatory approvals, the deal is expected to close in the first quarter of 2022.
“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,” said Jason Robins, DraftKings’ CEO and Chairman of the Board.
“This deal creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion as well as technology optimization and greater marketing efficiencies. We look forward to Tilman being an active member of our board and one of our largest shareholders,” Robins added.
Feritta said the deal would take advantage of the remainder of his assets, such as Golden Nugget’s land-based player database.
“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,” Feritta commented.
Source. GMB
