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DraftKings sets new deadline to close GNOG acquisition

| By Daniel O'Boyle
DraftKings has set a target date of 31 May to close its acquisition of Golden Nugget Online Gaming (GNOG), after missing the initial Q1 target.
DraftKings Donoghue

DraftKings announced a deal to acquire GNOG in August 2021. DraftKings will pay 0.365 newly issued shares for each common share of Golden Nugget Online Gaming, in a transaction that values the operator at $1.56bn (£1.19bn/€1.42bn).

GNOG’s chairman, chief executive and largest shareholder, Tilman Fertitta, who owns approximately 46% of the business, has agreed to continue to hold the DraftKings shares he will receive – worth more than $700m – for at least a year.

Fertitta – who will continue to own the Golden Nugget land-based business – will also join the DraftKings board.

The deal was initially expected to close in the first quarter of 2022. However, that deadline passed without the businesses gaining all the approvals necessary to combine.

“DraftKings and GNOG continue to pursue the remaining gaming regulatory approvals necessary to consummate the acquisition,” DraftKings said.

“Accordingly, DraftKings now expects the acquisition to be consummated on or prior to 31 May 2022, subject to the satisfaction or waiver of closing conditions.”

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