DraftKings is not only throwing money at Entain to buy up what’s left of its assets, but also invested in Horizon Acquisition Corp., a SPAC formed to guide Vivid Seat public.
The sportsbook heavyweight is absorbing part of the commitment of Eldridge Investments, a firm founded by Los Angeles Dodgers owner Todd Boehly. Eldridge is also an investor in DraftKings, according to Front Office Sports.
The SPAC merger with Vivid, signed in April, prices the value of the combined company at $1.95 billion.
The goal is to raise $769 million in cash and stock for Vivid Seats, $225 million coming from a private investment in public equity. DraftKings is participating in the PIPE. DraftKings is buying stock in the SPAC valued at $10 a share. It can sell shares back to Eldridge at $9.77 a share after the merger.
DraftKings has invested $1.6 billion this year, most of it going to the purchase of Golden Nugget Online Gaming in August. It acquired sports betting broadcast network VSiN in March, iGaming company BlueRibbon in April, and legal-tech company LinkSquares in July.
Sports betting operator Entain is mulling a $22.4 billion acquisition offer from DraftKings.
In other DraftKings News, the sportsbook has added the NHL to DraftKings list of organizations it serves as official sports betting, daily fantasy sports and iGaming partner. DraftKings also became the exclusive sportsbook and daily fantasy sports provider for Turner Sports’ coverage of the NHL.
“The NHL has some of the most passionate fans in all of sports and we are delighted to be working with the league, while developing a rich and engaging viewership and content experience that matches this fanbases’ enthusiasm through our deal with Turner,” said DraftKings CEO and President Jason Robins in a statement.
The NHL deal provides DraftKings access to official marks and logos, and themed sweepstakes and promotional efforts during the regular season, the NHL All-Star Weekend, and throughout the Stanley Cup playoffs and finals. Moreover, the sportsbook will be able to integrate content from the NHL’s media platforms.
“We’re proud to welcome back DraftKings to the NHL family and look forward to collaborating together with Turner Sports—one of our valued media partners—to develop unique and exciting content for our fans,” said NHL Chief Business Officer and Senior Executive Vice President Keith Wachtel in a statement.
DraftKings will provide sports betting information and daily fantasy content during Turner Sports telecasts and across Bleacher Report digital channels, including betting odds and daily fantasy statistics, original content, automated alerts, and news.
In other news, in accordance with U.K. merger and takeover law, DraftKings was expected to formalize it’s $22.5 billion bid to takeover Entain Plc by October 19. The day came and went but Entain has agreed to give the bidder an extra month to decide by November 16, according to the Las Vegas Review-Journal.
Entain said in a statement that the company’s board has been in talks to assess the merits and the feasibility of the bid.
Still hanging out there is the fate of BetMGM, the top three mobile sportsbook partnership between Entain and MGM Resorts. The Las Vegas-based partner gaming company says any deal must have their consent. MGM wants full control of the sportsbook.
MGM Resorts CEO Bill Hornbuckle reaffirmed that position in a public statement this month, saying his company had the ability to block DraftKings from conducting business in the U.S. if the transaction for Entain is completed, according to Sports Handle. If consummated, the deal would be the largest acquisition in the online gaming space on record.
“MGM will engage with Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements which meets all parties’ objectives,” the company said.
The deal would also enable DraftKings to expand beyond U.S. borders. DraftKings would also serve notice to Flutter, the parent company of FanDuel, that it is ready to play on a global stage.
The deadline for a deal with DraftKings can be further extended by the board of Entain, with the consent of the company’s takeover board, Entain said in a statement.
