Ex-SPAC combo doubles Golden Nugget money

Jason Robins, CEO of DraftKings, reacts after the company’s initial public offering (IPO) listing, outside the Nasdaq MarketSite, in New York City, U.S., June 11, 2021. REUTERS/Shannon Stapleton

NEW YORK, Aug 9 (Reuters Breakingviews) – In June 2020, casino mogul Tilman Fertitta agreed to sell his Golden Nugget Online Gaming (GNOG.O) outfit to a special-purpose acquisition company – also managed by him – for $314 million in shares plus $30 million in cash. Now another ex-SPAC, $21 billion digital sports and gaming company DraftKings (DKNG.O), is sweeping up the publicly traded Golden Nugget for an equity value of around $1.6 billion, the companies said on Monday.

That is a premium of more than 50% to the target’s market value on Friday. Fertitta’s entertainment group now owns about 46% of Golden Nugget, so the Houston Rockets owner’s share, payable in DraftKings stock, is worth around $700 million. That’s a handy doubling since just over a year ago.

That two SPAC progeny are combining is a reminder of the rush of blank-check vehicles read more that came to market in recent years. DraftKings’ future value hinges on further liberalization and adoption of online gambling in the United States. What’s more certain for now is that Fertitta knows how to make his own luck. (By Richard Beales)

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Editing by Richard Beales and Katrina Hamlin

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