Golden Nugget (GNOG) stock rises. Time to buy?

2 min read | August 09, 2021 11:58 AM EDT | By Raza Naqvi

Golden Nugget (GNOG) stock rises. Time to buy? — Image source: amirraizat, Shutterstock

Key highlights of the DraftKings (DKNG)-Golden Nuggets (GNOG) deal

Golden Nugget is backed by billionaire businessperson Tilman Fertitta, who had opted for a public debut via a special purpose acquisition company (SPAC) merger.

DraftKings is expected to record synergies of US$ 300 million at maturity and eliminate additional platform expenses by transferring Golden Nugget's current technology to the company's in-house proprietary platform.

Golden Nuggets' iGaming customer base is huge and DraftKings could use it to increase the revenues and expand the customer base.

Under the deal, both firms will undergo a reorganization and will be named as New DraftKings. Once the acquisition is through, it will be rebranded DraftKings Inc.

As part of the all-stock transaction, shareholders of Golden Nugget will receive 0.365 shares of New DraftKings' common stock on a fixed ratio basis. As Fertitta holds a 46 per cent stake in Golden Nuggets, he will continue to hold shares of DraftKings that will be issued to him after the merger for at least one year.

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