Gaming

DraftKings Announces Buying GNOG for $1.56 Billion in Shares

Tilman Fertitta’s Golden Nugget Online Gaming (NASDAQ: GNOG) was purchased by DraftKings (NASDAQ: DKNG) for $1.56 billion in shares. In a letter to clients, Jed Kelly, an analyst from Oppenheimer analyst, stated that consolidation in the online casino and sports betting industries is just the beginning. With a price of $80, Jed rates DraftKings as “outperform,” suggesting a 56 percent gain from Monday’s closure.

DraftKings, on the other hand, is proving itself to be a leading acquisitive firm. Golden Nugget Online acquisition is expected to conclude in the first quarter of 2022.

This acquisition is DraftKings’ third disclosed purchase in the last few months, excluding investments in other companies and new business initiatives. The operator also revealed buying Vegas Sports Information Network (VSiN) in late March, followed by Blue Ribbon Software a week later.

Analysts are pretty optimistic about the DraftKings/GNOG deal, saying that the bidder is offering advantageous conditions due to the target’s falling stock price. Not only will the transaction result in immediate revenue savings, but GNOG will invite 5.5 million consumers into the deal, which will be incorporated with the DraftKings database.

As Kelly of Oppenheimer points out, the DraftKings/GNOG deal comes five days after Penn National Gaming (NASDAQ: PENN) announced its $2 billion cash and stock acquisition of Score Media and Gaming (NASDAQ: SCR).

FuboTV and Rush Street Interactive Next Possible Target

FuboTV is a sports-focused streaming service planning to expand its sports betting offering and use its platform to enter the betting industry. Since the market valuation is $3.94 billion, the firm is ready for various bidders, and earlier this year, there was talk that DraftKings may make a streaming purchase.

Big Deals on the way

The acquisition of GNOG by DraftKings does not qualify as “big,” and a buyout of RSI would certainly do the same. However, by the end of the year, investors may be treated to a significant buyout.

MGM Resorts International (MGM) is making another bid for BetMGM partner Entain Plc (GMVHY). In January, MGM’s $11.06 billion offer for the British bookmaker was rejected.

Janice Graziano

Janice has joined Times of Casino team as a casino news writer. Along with writing, she is additionally a content manager. Janice has over five years of experience in inscribing. Her zealousness for casino and online gaming draw her to casino industry. In her spare time, she relishes playing online poker games.

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