DraftKings in sale talks with Diamond Eagle: Report
Former executives from MGM and CBS behind the possible deal
DraftKings is considering selling itself to former media executive Jeff Sagansky’s Diamond Eagle Acquisition Corp., according to a report on Wednesday.
The daily fantasy sports and gambling company is in “advanced talks” with Sagansky’s firm, which operates as a special-purpose acquisition company, Bloomberg reported, citing sources familiar with the matter. SPACs raise money through an initial public offering and then use the proceeds to acquire another firm.
“DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to comment on the specifics of any of those discussions,” a company spokesperson said in a statement to FOX Business.
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The report notes that terms of a potential sale have not been finalized and could end without a deal. A sale would essentially allow DraftKings to be publicly traded without submitting for an IPO at a time when recent public offerings have been poorly received by investors.
Diamond Eagle representatives could not immediately be reached.
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Founded as a daily fantasy sports operator, Boston-based DraftKings began offering sports betting services shortly after the U.S. Supreme Court struck down a federal ban in May 2018. DraftKings sought to merge with rival daily fantasy operator FanDuel, but called off the deal in 2017 after facing pressure from the Federal Trade Commission.
DraftKings operates live sportsbooks in New Jersey, New York and Mississippi and offers mobile betting in several other states. The company also runs a branded fantasy sports lounge at AT&T Stadium, home to the NFL’s Dallas Cowboys.
DraftKings has raised more than $640 million in several funding rounds, according to CrunchBase. Investors include Major League Baseball, Cowboys owner Jerry Jones and New England Patriots owner Robert Kraft.
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Diamond Eagle is run jointly by former CBS Entertainment chief Sagansky and NBC and Harry Sloan the former CEO of famed Hollywood studio, MGM.