Fantasy sports and gambling company DraftKings will be taken public by an entity founded by Hollywood executives Jeff Sagansky and Harry Sloan in a deal valuing the company $3.3 billion, the firm said on Monday.
Under the deal, Diamond Eagle Acquisition Corp – a publicly traded special purpose acquisition company founded by Sagansky and Sloan, will merge with DraftKings and SBTech, a sports betting technology firm.
Diamond Eagle said it would change its name to DraftKings Inc, reincorporate in Nevada and remain Nasdaq-listed under a new ticker symbol.
Institutional investors, including funds managed by Capital Research and Management Co, Wellington Management Co and Franklin Templeton, will invest $304 million in the newly formed entity.
The combined company will be led by DraftKings co-founder and chief executive officer Jason Robins.
Goldman Sachs is the exclusive financial adviser to Diamond Eagle, Raine Group is advising DraftKings, while Stifel is advising SBTech.