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DraftKings to Go Public in April Despite Lack of Pro Sports

DraftKings to Go Public in April Despite Lack of Pro Sports

(Bloomberg) -- DraftKings Inc., the sports-betting site stuck issuing credits as events get canceled worldwide, is driving ahead with plans to go public in April through a reverse merger.

The Boston-based gaming and fantasy sports company agreed in December to a three-way deal valuing it at $3.3 billion with gaming technology provider SBTech and Diamond Eagle Acquisition Corp., a publicly traded special purpose acquisition company.

“We are pleased that our registration statement was declared effective by the U.S. Securities and Exchange Commission this morning, which brings us another step closer to our goal of becoming a public company in April,” DraftKings Chief Financial Officer Jason Park said in an email.

Shareholders of Diamond Eagle are now scheduled to vote on the deal on April 23 after the special meeting was earlier delayed due to the coronavirus pandemic.

Diamond Eagle, a so-called blank check company, raised $400 million in an initial public offering in May. It said in a statement Wednesday that the deal also involves issuing shares in its DEAC Nevada unit.

With major sports leagues being forced to shut down and gamblers resorting to Eastern European table tennis, President Donald Trump has pledged to bring sports back as soon as possible.

“We have to get our sports back,” Trump said Tuesday at a White House press conference. “I’m tired of watching baseball games that are 14 years old.”

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