Stock Market/Investing

[ijustposthere]

I just read up on this, Draftkings is merging with DEAC and another company. After the merger it appears DEAC will become whatever stock ticker Draftkings will be. At least that’s how I understand the process. It doesn’t appear to be a traditional IPO.

Draftkings IPO Article

That's how I've read it as well. DKNG is going to be their ticker, and yeah, might have missed it already lol. The other company is some kind of online betting platform, I believe.

 

[Burque]

hmm that’s pretty interesting. It’s on my radar now...seems like a month ago was the time to get in(kinda like everything else). Have to see if it drops sometime and get in maybe. I do recall reading something about online companies, like a draft kings, are getting excluded from some states sports betting. I’ll have to go see if I can find those articles again.

edit - of course it was Illinois lol. They are still banned for the time being, but not for long apparently

Illinois Passes Sports Betting Bill SB690 Gives DraftKings & FanDuel a Timeout

The wave of legal sports betting continued to roll across the US on Sunday. Illinois lawmakers sent Senate Bill 690 to Governor JB Pritzker's desk for a

www.lineups.com

That is very Illinois.... We have legal sports betting YAY!!! Except you. You are not allowed to do the sports betting.

 

[ijustposthere]

Sports-Betting Operator DraftKings Set to Go Public

DraftKings is set to begin public trading Friday after shareholders of a special-purpose acquisition company voted to approve its takeover of the sports-betting operator.

www.wsj.com

 

[Burque]

Sports-Betting Operator DraftKings Set to Go Public

DraftKings is set to begin public trading Friday after shareholders of a special-purpose acquisition company voted to approve its takeover of the sports-betting operator.

www.wsj.com

Why would a company like Draft Kings want to go public? Can someone explain that to me? Especially since they have 500 Milly in cash, they don't need to raise funds obviously.

 

[ijustposthere]

Why would a company like Draft Kings want to go public? Can someone explain that to me? Especially since they have 500 Milly in cash, they don't need to raise funds obviously.

I think the worth and 500m is from the three companies combined, but I also asked myself the same question. I can't seem to find much solid info.

 

[MDB111™]

Why would a company like Draft Kings want to go public? Can someone explain that to me? Especially since they have 500 Milly in cash, they don't need to raise funds obviously.

Way to use your noodle.
How can DK grow?
Why do they need investors money?



Its pretty clear to me that having a website that is worldwide and a small rake is failing somehow. So they will take on investors money to either fail harder or lie about how awesome theybare doing.
This serves to get CEOs and chairman rich.

I personally will dive into their business model because I use DK but my initial reaction to this is STAY Away!


Theres no growth here. it's not like a casino where
you can quite literally build and grow more casinos when you do well.

 

[Burque]

Way to use your noodle.
How can DK grow?
Why do they need investors money?



Its pretty clear to me that having a website that is worldwide and a small rake is failing somehow. So they will take on investors money to either fail harder or lie about how awesome theybare doing.
This serves to get CEOs and chairman rich.

I personally will dive into their business model because I use DK but my initial reaction to this is STAY Away!


Theres no growth here. it's not like a casino where
you can quite literally build and grow more casinos when you do well.

I wonder if they've spent too much money on their advertising budget. Having commercials all over every football Sunday cannot be cheap.

But at this point there is so much market penetration that I am not sure it is possible to grow that much no matter what you do.

 

[MDB111™]

I wonder if they've spent too much money on their advertising budget. Having commercials all over every football Sunday cannot be cheap.

But at this point there is so much market penetration that I am not sure it is possible to grow that much no matter what you do.

I think you are right. As if DK didnt advertise enough;investing will mean even more.

Also 3 companies had to merge before this? And DK merged already with FanDuel yrs ago?

These guys just want more money and less control and that's what they can legally have by going public.

There is nothing appealing to this for me. Unless I am missing something spectacular or new?

 

[ijustposthere]

I think you are right. As if DK didnt advertise enough;investing will mean even more.

Also 3 companies had to merge before this? And DK merged already with FanDuel yrs ago?

These guys just want more money and less control and that's what they can legally have by going public.

There is nothing appealing to this for me. Unless I am missing something spectacular or new?

Draftkings didn't merge with fanduel. From what I've found, this has something to do with sports betting becoming legalized. Up until this year, I don't recall them having anything outside of DFS. At least not until sports betting was legalized in Indiana. I'm still trying to find info.

 

[MDB111™]

Draftkings didn't merge with fanduel. From what I've found, this has something to do with sports betting becoming legalized. Up until this year, I don't recall them having anything outside of DFS. At least not until sports betting was legalized in Indiana. I'm still trying to find info.

They merged in 2016.

 

[ijustposthere]

They merged in 2016.

It was called off in 2017. Challenged by the FTC. Fanduel merged with another company.

 

[MDB111™]

It was called off in 2017. Challenged by the FTC. Fanduel merged with another company.

Thanks for that update.

I did read a bit further and Fanduel was merged with a company called flutter. I wonder now if Flutter is one of the 3 companies becoming DKNG?

Either way, my ignorance aside! I don't like this move. Not sure how a small time shareholder makes money other than it rising out of stupidity of private investors. Too risky.

 

[ijustposthere]

Thanks for that update.

I did read a bit further and Fanduel was merged with a company called flutter. I wonder now if Flutter is one of the 3 companies becoming DKNG?

Either way, my ignorance aside! I don't like this move. Not sure how a small time shareholder makes money other than it rising out of stupidity of private investors. Too risky.

Flutter is merging, or merged, with another company that's already publicly traded. I think it was TSG ticker. I've only found this out looking for info on draftkings. I almost jumped in on pure emotion, but luckily I did like @Burque and asked why. I'm interested with sports gambling becoming more legal, but the lack of info when this was apparently announced months ago draws my concern. There's like nothing right now.

 

[MDB111™]

Flutter is merging, or merged, with another company that's already publicly traded. I think it was TSG ticker. I've only found this out looking for info on draftkings. I almost jumped in on pure emotion, but luckily I did like @Burque and asked why. I'm interested with sports gambling becoming more legal, but the lack of info when this was apparently announced months ago draws my concern. There's like nothing right now.

So a little digging leads to a lawsuit- When Flutter took over Fanduel, it ousted all sorts of money the original 3 founders of Fanduel were set to receive. from the vetoed merger in 2016 with DK. There is a half billion dollar lawsuit from the original 3 founders trying to seek money they think they are entitled to from the new merger with Flutter that should have happened with Fanduel and DK

At the time DK and Fanduel were 1 and 2 respectively. Now that Flutter has acquired Fanduel, DK is number 2 in the market by a longshot.


This public offering is shit. It will allow for any lawsuits and bad blood behind the scenes stuff to be settled with funds from investors. Any profit an investor could hope for has already been taken when private firms got initial shares in private offerings in 2019.

Steer clear IMO---This one is junk


It's sort of like the weed stocks- One simply assumes "everyone smokes weed so a legit weed company is going to crush it!" Not the case in Vice stocks- If there is no growth plan that can show me how I get my ROI, I won't invest.


IMO- **** this stock

https://www.casino.org/news/fanduel-founders-renew-lawsuit-against-flutter-entertainment/

 

[PaytonHighstep]

Now This

I find this article saying they’ll trade under their stock ticker tomorrow on the NASDAQ.

 

[knoxville7]

Way to use your noodle.
How can DK grow?
Why do they need investors money?



Its pretty clear to me that having a website that is worldwide and a small rake is failing somehow. So they will take on investors money to either fail harder or lie about how awesome theybare doing.
This serves to get CEOs and chairman rich.

I personally will dive into their business model because I use DK but my initial reaction to this is STAY Away!


Theres no growth here. it's not like a casino where
you can quite literally build and grow more casinos when you do well.

well, the bull argument would be that the growth will come from sports betting becoming normalized across the United States. It’s in the infancy of it currently. Kinda the same argument for pot stocks. Not saying DK is a homerun stock...just playing devils advocate

 

[ijustposthere]

So a little digging leads to a lawsuit- When Flutter took over Fanduel, it ousted all sorts of money the original 3 founders of Fanduel were set to receive. from the vetoed merger in 2016 with DK. There is a half billion dollar lawsuit from the original 3 founders trying to seek money they think they are entitled to from the new merger with Flutter that should have happened with Fanduel and DK

At the time DK and Fanduel were 1 and 2 respectively. Now that Flutter has acquired Fanduel, DK is number 2 in the market by a longshot.


This public offering is shit. It will allow for any lawsuits and bad blood behind the scenes stuff to be settled with funds from investors. Any profit an investor could hope for has already been taken when private firms got initial shares in private offerings in 2019.

Steer clear IMO---This one is junk


It's sort of like the weed stocks- One simply assumes "everyone smokes weed so a legit weed company is going to crush it!" Not the case in Vice stocks- If there is no growth plan that can show me how I get my ROI, I won't invest.


IMO- **** this stock

https://www.casino.org/news/fanduel-founders-renew-lawsuit-against-flutter-entertainment/

I'm not sure that involves draftkings. They aren't involved with flutter. The only lawsuit I can find involving draftkings was settled a few days ago, and they paid out $102,000 in a class action. Even then, it looks like they mostly only deposited credit into users accounts.

They're merging with a company called Diamond Eagle Acquistions. It's supposed to make it easier for them to go public. The other company is SBtech, apparently an online gaming casino platform. I guess draftkings is opening a new sportsbook in Colorado, and also supposedly bought some space in Nevada and plans to open a sportsbook there. I guess they are anticipating more states legalizing sports gambling, especially after COVID-19 leaves the states needing cash. I've been digging through articles getting info little by little.



I'm going to keep my eye on it. Not sure now would be the best time to buy since there's really not much to bet on anyway. If football doesn't start on time, they'll get pounded. of course, by the time I believe it's a buy will be way too late lol.

 

[ijustposthere]

Okay, so I decided to look into SBtech instead of Draftkings, and they recently had a cyber attack and had to set aside money in case of litigation.

Gambling company to set aside $30 million to deal with cyber-attack fallout

In the middle of a merger, SBTech will have $30 million placed in escrow to deal with the repercussions of a past cyber-attack.

www.zdnet.com

 

[knoxville7]

I'm not sure that involves draftkings. They aren't involved with flutter. The only lawsuit I can find involving draftkings was settled a few days ago, and they paid out $102,000 in a class action. Even then, it looks like they mostly only deposited credit into users accounts.

They're merging with a company called Diamond Eagle Acquistions. It's supposed to make it easier for them to go public. The other company is SBtech, apparently an online gaming casino platform. I guess draftkings is opening a new sportsbook in Colorado, and also supposedly bought some space in Nevada and plans to open a sportsbook there. I guess they are anticipating more states legalizing sports gambling, especially after COVID-19 leaves the states needing cash. I've been digging through articles getting info little by little.



I'm going to keep my eye on it. Not sure now would be the best time to buy since there's really not much to bet on anyway. If football doesn't start on time, they'll get pounded. of course, by the time I believe it's a buy will be way too late lol.

not to mention people will want to gamble online whenever possible now, rather than sit around a crammed table with people smoking and coughing everywhere...thanks covid

 

[Burque]

not to mention people will want to gamble online whenever possible now, rather than sit around a crammed table with people smoking and coughing everywhere...thanks covid

So much for live poker games.