With large institutional investors and other billionaire backers launching SPACs left and right, the trend is unlikely to disappear overnight. All Rights Reserved. Lastly, DraftKing founders and shareholder are rolling 100% of their equity and SBTech shareholders are rolling ~$450 million of equity value into the company. DIAMOND EAGLE ACQUISITION CORP. (Exact name of registrant as specified in its charter) D e l aw are 001-38908 83-4578968 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) Sloan and Sagansky's other SPAC — Diamond Eagle Acquisition Corp. — brought sports-betting company DraftKings Inc. (NASDAQ: DKNG) in … As for the transaction, the press release and presentation were a little opaque on structure details, however, after combing through the filed documents a few items stood out (skip to below if you’d like to read that first). Otherwise the SPAC is liquidated and investors get their money back with interest. And why are investors lining up to jump on the trend? ", Billionaire Ray Dalio bought his first stock at age 12 — here's his lesson for young investors, DoorDash IPO will make its CEO a billionaire — here's how his immigrant parents inspired his success, Don't miss: The best credit cards for building credit of 2021, Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, © 2021 CNBC LLC. They’ve been acquired by the SPACs Diamond Eagle Acquisition Corp., Social Capital Hedosophia, and VectorIQ Acquisition Corp., respectively. Additionally, DEAC and DK have raised a $380 million PIPE, with $76 million of that total in the form of a convertible note that converts to shares at closing. Nikola. LOS ANGELES, CA January 6, 2020 – Diamond Eagle Acquisition Corp. (Nasdaq: DEAC) (“Diamond Eagle”), a publicly traded special purpose acquisition company led by Harry Sloan and Jeff Sagansky, announced today that its subsidiary, DEAC NV Merger Corp., has filed with the U.S. Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 (the … Spinning Eagle Acquisition Corp. A new SPAC called Spinning Eagle Acquisition Corp filed for registration on December 23. Playboy will be going public again after merging with the Mountain Crest Acquisition Corp. SPAC. When the investors approved the merger, the SPAC’s common shares traded at $17.53, a 75% return from the $10 offer price. While some high-profile SPACs have performed reasonably well (DraftKings and Virgin Galactic have both seen their stock prices grow since going public), advisory firm Renaissance Capital found that the average returns from SPAC mergers completed between 2015 and 2020 fell short of the average post-market return for investors from an IPO. Sloan and Baker’s special purpose acquisition company (SPAC), Soaring Eagle Acquisition Corp, declined to comment, while the SEC did not immediately respond to … A Division of NBC Universal. Veteran Hollywood executives Jeff Sagansky and Harry Sloan are launching Diamond Eagle Acquisition Corp. with a $400 million initial public offering. The SPAC served as a launchpad for the sports betting juggernaut DraftKings (NASDAQ: DKNG) to go public earlier this year. For instance, Diamond Eagle Acquisition Corp. was set up in 2019 and went public as a SPAC that December. Soaring Eagle Acquisition Corp. has filed to go public with an IPO on the NASDAQ. SPACs lined up for 2021, include Bill Gates-backed portable ultrasound start-up Butterfly Network (valuing the company at $1.5 billion) and DNA-testing startup 23andMe is reportedly in talks to go public through a $4 billion deal. SPAC: SRNG - Soaring Eagle Acquisition Corp. - All information you need to know about the SPAC: SRNG - Soaring Eagle Acquisition Corp. Latest Price: … Institutional investors with track records of success can more easily convince people to invest in the unknown. © 2021 SPACInsider | Theme by Theme Ansar, Diamond Eagle (DEAC) to Combine with DraftKings & SBTech, entered into a Business Combination Agreement, After Double-Digit Fall, Is It Time for a Bullish DraftKings Stock Bet? Usually a SPAC is created, or sponsored, by a team of institutional investors, Wall Street professionals from the world of private equity or hedge funds, while even high-profile CEOs like Richard Branson and fellow billionaire Tilman Fertitta have jumped on the trend and formed their own SPACs. A special purpose acquisitions company is essentially a shell company set up by investors with the sole purpose of raising money through an IPO to eventually acquire another company. It also acquired SBTech. While the SPAC merger process does require transparency regarding the target company, former Goldman Sachs CEO Lloyd Blankfein told CNBC recently that the due diligence of the SPAC process is not as rigorous as a traditional IPO. Playboy will be going public again after merging with the Mountain Crest Acquisition Corp. SPAC. DraftKings began trading as a public company when the deal closed in April. About Diamond Eagle Acquisition Corp. Pershing Square Tontine marked the largest SPAC to ever go public, according to Renaissance Capital, raising $4 billion. DraftKings merged with Diamond Eagle Acquisition in April 2020. Short-seller Carson Block agrees with Blankfein, calling the SPAC trend the "Great 2020 Money Grab" in a paper for his firm, Muddy Waters Research, in which he writes that "a business model that incentivizes promoters to do something — anything — with other people's money is bound to lead to significant value destruction on occasion. For instance, Diamond Eagle Acquisition Corp. was set up in 2019 and went public as a SPAC that December. Before it was Draft Kings, it was Diamond Eagle Acquisition Corp. Half the battle with SPACs is getting the attention of sector investors. Diamond Eagle Acquisition is … Those betting DraftKings was due for the public markets may have just hit pay dirt. And clearly, investors seem to like this deal since the share price zoomed to ~$10.70 this morning, significantly above their current estimated trust value. Home » Weekly IPO Updates » INTEL » Diamond Eagle (DEAC) to Combine with DraftKings & SBTech. Goldman Sachs and Credit Suisse are acting as private placement agents to Diamond Eagle. A well-known SPAC team is launching a $1.5 billion offering that could be highly anticipated by investors given their history in the space. All told, DraftKings is a nice high profile name for a SPAC and it’s already generated a lot of excitement, but it’s just day-one. About SRNG Soaring Eagle Acquisition is a blank check company incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. Suze Orman: The biggest mistake young people make when investing, How millennials have been affected by unemployment during coronavirus, 23 Black leaders who are shaping history today, Doomsday preppers spend on survival kits, emergency food supplies and shelter, Amex launches a $200 statement credit offer for the Amex Blue Cash Everyday Card. It is illegal for insiders to make trades in their companies based on material, non-public information ("MNPI"). Spinning Eagle Acquisition Corp: A new SPAC called Spinning Eagle Acquisition Corp filed for registration on December 23. DraftKings. Diamond Eagle merged with DraftKings, creating the only pure-play sports betting company. A high-level overview of Diamond Eagle Acquisition Corp. (DEAC) stock. Founded by media executive Jeff Sagansky and founding investor Harry Sloan, Diamond Eagle Acquisition Corp. was formed for … A SPAC IPO gave the company money sooner than later and brought guaranteed investors. Stifel is acting as financial advisor and Herzog, Fox & Neeman and Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal advisors to SBTech. Investors who bought Diamond Eagle shares on its IPO debut have quadrupled their investment. Diamond Eagle Acquisition Corp. (Nasdaq: DEAC) ("Diamond Eagle"), a publicly traded special purpose acquisition company led by Harry Sloan … Real time Diamond Eagle Acquisition Corp. (DEAC) stock price quote, stock graph, news & analysis. DraftKings also went public last year when it was acquired along with sportsbook technology developer SBTech by Diamond Eagle Acquisition Corp., yet another SPAC. DKNG is a digital sports entertainment and gaming company headquartered in Boston. As we saw with Virgin Galactic, once that first day buzz wears off, that’s when the real work begins. Sloan and Baker’s special purpose acquisition company (SPAC), Soaring Eagle Acquisition Corp, declined to comment, while the SEC did not immediately respond to … Raine Group is acting as exclusive financial advisor to DraftKings. The team behind Flying Eagle has some experience in this area. The SPAC is seeking to sell 150 million units at $10 each to raise $1.5 billion. Diamond Eagle Acquisition Corp., led by Sloan, announced Wednesday that it had received the approval from the Securities and Exchange Commission and is now moving to … Examples of high-profile SPAC deals include gambling company DraftKings Inc., which went public through a reverse merger with Diamond Eagle Acquisition Corp. in April, and electric-vehicle maker Nikola Corp., which merged with VectoIQ Acquisition Corp. in June. It merged with SPAC Diamond Eagle Acquisition Corp. and went public on April 29, 2020, trading at $19.40. Sullivan & Cromwell LLP is acting as legal advisor to DraftKings. SPACs have been around for decades and often existed as last resorts for small companies that would have otherwise had trouble raising money on the open market. Diamond Eagle Acquisition Corp. (DEAC) announced this morning that they have entered into a Business Combination Agreement with DraftKings and SBTech, to create the only vertically-integrated U.S.-based sports betting and online gaming company. In fact, roughly 200 SPACs went public in 2020, raising about $64 billion in total funding, nearly as much as all of last year's IPOs combined, according to Renaissance Capital. Diamond Eagle is the fifth SPAC set up by serial dealmaker Sagansky, who founded Diamond Eagle with investor Harry Sloan. At that time, the SPAC was trading below $20. Target companies run the risk of having their acquisition be rejected by SPAC shareholders. Quick takes:  There was a leak about this deal back at the end of October that was widely reported and it seemed to generate a significant amount of interest. The SPAC originally raised $350 million in May 2019, listing its units under the symbol DEACU, which comprised common shares and 1/3 warrants. The SPAC is seeking … Notably, Sagansky, Baker, and Sloan were the brains behind Diamond Eagle Acquisition Corp. Now, the office space leasing start-up is in talks to go public via a different manuever: It's considering using a SPAC, or special purpose acquisition company, one of the hottest trends on Wall Street. Flying Eagle is a special purpose acquisition company, or SPAC. And investors are literally going blindly into the investment. So a SPAC has no commercial operations — it makes no products and does not sell anything. Per the December 23rd filing, Spinning Eagle Acquisition Corp will aim to sell 150 million units for a price of $10 each to total $1.5 billion, with each individual unit offering 1/5th of a warrant to purchase a common share for $11.50. Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are acting as capital markets advisors. Six months later, DKNG peaked above $64. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. So what exactly is a SPAC? Misalnya, Diamond Eagle Acquisition Corp. Didirikan pada 2019 dan go public sebagai SPAC … The executives behind Diamond Eagle… Earnouts are generally a positive since they incentivize management to perform, but since this combination has a complicated earnout, perhaps it was left out since it doesn’t read all that easily. Example 3: NKLA. But others chose the alternate route to an IPO by merging with a SPAC. Diamond Eagle Acquisition, the fifth blank check company formed by entertainment veteran Jeff Sagansky, raised $350 million by offering 35 units at $10, as expected. That's also why a SPAC is also often called a "blank check company.". The $304 million portion will be 30,471,352 shares of Class A common stock for $10.00 per share and an aggregate of 3,000,000 warrants. The Flying Eagle Acquisition IPO, announced late Thursday, was priced at $10 per unit for 60 million unit. The deal marks the second SPAC deal for Sloan and Sagansky this year. PROPOSED BUSINESS COMBINATION: DraftKings Inc. SBTech, is an international turnkey provider of cutting-edge sports betting and gaming technologies. The new DraftKings will continue to be led by co-founder and CEO Jason Robins and will retain DraftKings’ management team, including co-founders Paul Liberman and Matt Kalish. The good news is, shareholders get to vote on that. purpose acquisition company, or SPAC — is essentially a shell corporation used to raise investment through a public offering. TRADING QUOTES CLICK ON A TAB BELOW: (Business Combination or IPO Details) to access the relevant details. Diamond Eagle provided about $700 million worth of funding to the company. It then announced a merger with DraftKings and gambling tech platform SBTech. That's because when a SPAC raises money, the people buying into the IPO do not know what the eventual acquisition target company will be. Diamond Eagle merged with DraftKings, creating the only pure-play sports betting company. Many companies chose to postpone their IPOs (for fear that the market volitlity could spoil their stock's public debut). Diamond Eagle Acquisition Corp. operates as a blank check company. No days off in SPAC Land…. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. A SPAC merger allows a company to go public and get a capital influx more quickly than it would have with a conventional IPO, as a SPAC acquisition can be closed in just a few months versus the "grueling process" process of registering an IPO with the SEC, which can take up to six months. SPAC simple-nya perusahaan cangkang yang didirikan oleh investor dengan tujuan mengumpulkan uang melalui IPO untuk akhirnya mengakuisisi perusahaan lain. WeWork is just the latest in a growing list of companies: Virgin Galactic, DraftKings, Opendoor and Nikola Motor Co. have all gone public by merging with SPACs. Deutsche Bank AG and Goldman were the underwriters of Diamond Eagle Acquisition Corp., the SPAC that late in 2019 agreed to merge with DraftKings. DraftKings also went public last year when it was acquired along with sportsbook technology developer SBTech by Diamond Eagle Acquisition Corp., yet another SPAC. Once the IPO raises capital (SPAC IPOs are usually priced at $10 a share) that money goes into an interest-bearing trust account until the SPAC's founders or management team finds a private company looking to go public through an acquisition. A high-level overview of Diamond Eagle Acquisition Corp. (DEAC) stock. The SEC defines Insiders as officers, directors, or significant investors (greater than 10% ownership) in a company. It is that type of performance that has piqued interest in SPACs. Goldman Sachs is acting as exclusive financial advisor to Diamond Eagle. The SPAC originally raised $350 million in May 2019, listing its units under the symbol DEACU, which comprised common shares and 1/3 warrants. However, the nuts and bolts of it are that each of DEAC, DraftKings and SBTech are entitled to a number of earnout shares that are triggered at $12.50, $14.00 and $16.00, for one-third portion at each trigger (if you’re a subscriber, go to the. Each unit issued in the initial public offering consists of one share of Class A common stock and one-third of one warrant to purchase one share of … The executives behind Diamond Eagle… Spinning Eagle Acquisition Corp: A new SPAC called Spinning Eagle Acquisition Corp filed for registration on December 23. When the investors approved the merger, the SPAC’s common shares traded at $17.53, a 75% return from the $10 offer price. Diamond Eagle Acquisition Corp. (Nasdaq: DEACU), the fifth public acquisition vehicle led by media executive Jeff Sagansky and founding investor Harry Sloan, today announced the pricing of a $400 million initial public offering. The SPAC sponsors typically get about a 20% stake in the final, merged company. Winston & Strawn LLP is acting as legal advisor to Diamond Eagle. Daily fantasy sports and betting company DraftKings went public through a reverse merger in April. – Tradersville, After Double-Digit Fall, Is It Time for a Bullish DraftKings Stock Bet? Diamond Eagle Acquisition Corp. operates as a blank check company. The stock has gained more than 165% since its March lows. There is also buzz that digital media companies like BuzzFeed, Vice Media, Bustle Media Group and others could use SPACs to finally bring in money for their investors. Deutsche Bank AG and Goldman were the underwriters of Diamond Eagle Acquisition Corp., the SPAC that late in 2019 agreed to merge with DraftKings. Diamond Eagle Acquisition Corp. (Nasdaq: DEACU), the fifth public acquisition vehicle led by media executive Jeff Sagansky and founding investor Harry Sloan, today announced the pricing of a $400 million initial public offering. The merger gave DraftKings a … For those needing a program to tell who’s who, Diamond Eagle Acquisition is the fifth SPAC for Hollywood executives Harry Sloan and Jeff Sagansky. Each unit issued in the initial public offering consists of … The daily fantasy company and recent entrant in to the sports betting scene has agreed to a merger with special purpose acquisition company Diamond Eagle Acquisition Corp. that will bring the Boston-based company public. Here's what you need to know about SPACs. It was trading at $38.15 on October 28. However, SPAC sponsors also have a deadline by which they have to find a suitable deal, typically within about two years of the IPO. A $3.3 billion SPAC merger was announced between Diamond Eagle Acquisition Corp. and the combined entity of DraftKings, Inc., and SBTech (Global) Limited in a simultaneous three-party transaction. And since DraftKings is a highly recognizable brand, this transaction should get a lot of coverage now as well. Also, in a SPAC merger, the target company is able to negotiate its own fixed valuation with the SPAC sponsors. Sloan and Sagansky’s most significant SPAC deals to date involved their fifth and sixth vehicles, Diamond Eagle Acquisition Corp. and Flying Eagle Acquisition Corp. Diamond Eagle Acquisition Corp., a Century City-based blank check company formed by two veteran Hollywood executives, raised more than $400 million in its trading debut May 10. DraftKings, as many of you with an interest in sports already know, is a digital sports entertainment and gaming company known for its daily fantasy sports and mobile sports betting platforms. Maybe there’s a reason for it, but without any numbers to look at, it’s hard to tell. This page shows the track record and history of SLOAN HARRY insider trades in Diamond Eagle Acquisition Corp. Unit. In April 2020, the online sports betting company DraftKings merged with Diamond Eagle Acquisition. However, it should be interesting to see how investors feel about the dual class structure for the share and 10:1 voting rights, since it distributes the risk unequally. In December, the duo’s fifth blank-check company, Diamond Eagle Acquisition Corp, was part of three-way deal that will see sports betting giant … This company runs fantasy sports games and lets people make legal wagers on sporting events. It’s not a given. For those needing a program to tell who’s who, Diamond Eagle Acquisition is the fifth SPAC for Hollywood executives Harry Sloan and Jeff Sagansky. What would make some companies pick a SPAC over an IPO? There is also a $400 million minimum cash closing condition, after redemptions and proceeds from the PIPE, so DEAC only needs to retain $20 million in trust, post-vote, in order for this transaction to close. Blankfein also said that SPAC sponsors, who are mostly tasked with finding a workable acquisition within two years and not necessarily the best possible deal, are not incentivized to avoid having the SPAC overpay for the target company. Sloan and Sagansky’s most significant SPAC deals to date involved their fifth and sixth vehicles, Diamond Eagle Acquisition Corp. and Flying Eagle Acquisition Corp. Of course, there are still risks with SPACs. In April 2020, DKNG became a public company when it completed a $3.3 billion merger with SPAC Diamond Eagle Acquisition Corp. Which is good. The former Sony Corp. and CBS executive’s previous SPAC, Platinum Eagle Acquisition Corp., agreed to buy two lodging companies last year. DraftKings is combining with Diamond Eagle Acquisition Corp., a SPAC with a market cap of roughly $500 million, and SBTech, a betting and gaming technology company. It has yet to identify a company to acquire. ESTIMATED CURRENT FUNDS in TRUST: $405.0 million* CURRENT PER SHARE REDEMPTION PRICE: $10.12* EQUITY VALUE: $3.6 billion *SPACInsider estimate a/o 4-23-20 Diamond Eagle Acquisition Corp… American flags hang from the facade of the New York Stock Exchange (NYSE) building in New York January 28, 2021. Sloan and Sagansky’s most recent SPAC, Flying Eagle Acquisition Corp., ... when they took DraftKings public last year through their Diamond Eagle. Before it was Draft Kings, it was Diamond Eagle Acquisition Corp. The group officially filed to register a new SPAC, Spinning Eagle Acquisition Corp, two days before Christmas. When former unicorn darling WeWork set out to go public in 2019, its IPO imploded as its business model and co-founder Adam Neumann's management came under intense scrutiny. Additional info below. The Special Purchase Acquisition Company (SPAC) trend continues. So by combining both DraftKings and SBTech, you get an innovative platform at the vanguard of gaming. Diamond Eagle Acquisition Corp. (DEAC) announced this morning that they have entered into a Business Combination Agreement with DraftKings and SBTech, to create the only vertically-integrated U.S.-based sports betting and online gaming company. It then announced a merger with … Once an acquisition is completed (with SPAC shareholders voting to approve the deal), the SPAC's investors can either swap their shares for shares of the merged company or redeem their SPAC shares to get back their original investment, plus the interest accrued while that money was in trust. A $3.3 billion SPAC merger was announced between Diamond Eagle Acquisition Corp. and the combined entity of DraftKings, Inc., and SBTech (Global) Limited in a simultaneous three-party transaction. Investors that got in on the Diamond Eagle IPO in May 2019 at $10 made more than 500% in just 16 months. Trust Me Furthermore, it will also be interesting once we get to see the financials of the companies to better understand that 2020E EV/EBITDA multiple. The pro to a dual class structure is that protects against activist investors (among other pros and cons). DraftKings is combining with Diamond Eagle Acquisition Corp., a SPAC with a market cap of roughly $500 million, and SBTech, a betting and gaming technology company. However, the headline details are that this transaction has an implied enterprise value of $2.7 billion, with an implied equity value of $3.3 billion and the combined company will have over $500 million of unrestricted cash on the balance sheet at closing. This deal saw the Diamond Eagle Acquisition Corporation SPAC merging with DraftKings in a deal worth $3.3 billion. Real time Diamond Eagle Acquisition Corp. (DEAC) stock price quote, stock graph, news & analysis. The SBTech management team who bring the international markets, trading and risk management experience will also be integrated into the organization. - Value Spots, As for those “items that stood out”, first and foremost, the, There is also an earnout, but it’s not highlighted in the press release or presentation. 2121 Ave n … We don’t have any of the financials for DraftKings or SBTech yet, but a 3.9x 20. Diamond Eagle Acquisition Corp., led by Sloan, announced Wednesday that it had received the approval from the Securities and Exchange Commission and is now moving to the final step in the process. Recent SPAC examples. In fact, the SPAC's only assets are typically the money raised in its own IPO, according to the SEC. But they've recently become more prevalent because of the extreme market volatility caused, in part, by the global pandemic.

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