Please ensure Javascript is enabled for purposes of website accessibility

Why DraftKings' New Acquisition Makes Perfect Sense

By Jose Najarro – Updated Aug 10, 2021 at 4:37PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

DraftKings is acquiring Golden Nugget Online Gaming in an all-stock deal.

On Aug. 9, 2021, DraftKings (DKNG -4.25%) announced that it had entered a definitive agreement to acquire Golden Nugget Online Gaming (GNOG). In today's video I share why this acquisition is a strong move for DraftKings. Here are some highlights from the video. 

  1. The acquisition is valued at approximately $1.56 billion in an all-stock deal. The transaction is expected to close by the first quarter of 2022, and the CEO of Golden Nugget will become an active member of DraftKings' board and one of its largest shareholders.
  2. Golden Nugget will help accelerate DraftKings' growth in the online gambling market, bringing a database of more than 5 million customers. DraftKings intends to cross-sell these users for its sports betting and online gambling products. 
  3. Additionally, DraftKings will also enter into a commercial agreement with Fertitta Entertainment, the parent company of Golden Nugget. This commercial agreement will provide a strong partnership with the Houston Rockets as DraftKings becomes its exclusive daily fantasy sport, sports betting, and online gambling partner, pending state legalization and regulatory approvals. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Aug. 9, 2021. The video was published on Aug. 9, 2021.

Jose Najarro owns shares of DraftKings Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policyJose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

DraftKings Inc. Stock Quote
DraftKings Inc.
$14.20 (-4.25%) $0.63
Golden Nugget Online Gaming Stock Quote
Golden Nugget Online Gaming

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.