It appears that DraftKings Inc (NASDAQ: DKNG) has taken a cue from the markets and walked from a proposed transaction with UK-based Entain PLC. The firm formally announced this morning that it would not be submitting a firm offer for the company.
Initially leaked on September 21, the company has seen its equity slide in response to the proposed $20 billion dollar deal. While not stated directly, this is believed to be at least partially responsible for the firm walking from the transaction.
Commenting on the decision, CEO Jason Robins stated, “After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time. Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”
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The announcement follows a release made last week by the firm, wherein it had seen the extension of the window permitted to make a firm decision on the proposed transaction to November 16. At the time, the company said it was examining the transaction for benefits that include expansion into additional markets, product growth, and product innovation.
DraftKings last traded at $51.00 in pre-market trading, up 8.93% on the development.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
