Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of Golden Nugget Online Gaming, Inc. (Nasdaq: GNOG) are surging premarket on Monday after the announcement that DraftKings (Nasdaq: DKNG) is to acquire the company for approximately $1.56 billion.
The definitive agreement is for an all-stock transaction. Accordingly, Golden Nugget Online Gaming stockholders will receive 0.365 shares of New DraftKings’ Class A Common Stock for each share of Golden Nugget Online Gaming they hold.
“The acquisition will enable DraftKings to leverage Golden Nugget’s well-known brand, iGaming product experience and existing combined database of more than 5 million customers,” a statement from DraftKings read.
In connection with the acquisition, DraftKings has entered into a commercial agreement with Fertitta Entertainment, the parent company of the Houston Rockets, Golden Nugget, LLC and Landry’s LLC.
“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers,” said Jason Robins, DraftKings’ CEO and Chairman of the Board.
“This deal creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion as well as technology optimization and greater marketing efficiencies. We look forward to Tilman being an active member of our Board and one of our largest shareholders,” Robins added.
GNOG's share price has surged 54.85% to $19 premarket. DraftKings share price is trading at $53.70, up 4.09% ahead of the opening bell.
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .