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Investing.com — DraftKings stock (NASDAQ:DKNG) was up 4% while Golden Nugget Online Gaming (NASDAQ:GNOG) climbed 54% in Monday’s premarket trading following an all-stock $1.56 billion deal that will see the former acquiring the brand known for iGaming.
DraftKings has entered into an agreement with Fertitta Entertainment, the parent company of Golden Nugget, to buy the company.
Under the deal, DraftKings will undergo a holding company reorganization and form a new holding company New DraftKings, which will be a public company for both DraftKings and GNOG. New DraftKings will be renamed DraftKings at closing of the transaction, expected to happen by March.
Golden Nugget stockholders will get a fixed ratio of 0.365 shares of New DraftKings for each common share of Golden Nugget Online Gaming they hold on the record date.
Tilman Fertitta, who owns approximately 46% of the equity in GNOG, will hold the DraftKings shares to be issued to him in the merger for a minimum of one year from the closing of the transaction.
