DraftKings Stock Symbol “DKNG” to Trade Tomorrow?

UPDATE: It’s Official, DraftKings will trade tomorrow as “DKNG”

Since the end of 2019, DraftKings has been in “talks” for a merger with SBTech and Diamond Eagle. Finally as of late April 2020, that deal seems to be official. As Eben Novy-Williams reported on twitter, shareholders are voting (and have approved) the reverse merger which would officially allow DraftKings to go public.

DEAC Trading at $17.40 Before Reverse Merger

Assuming the reverse merger goes through, it is expected that “DraftKings” would publicly trade on April 24th. Back in late December 2019 when the merger was reportedly agreed upon, the sign DEAC was trading at just over $10 per share. As of the morning of the vote, it was trading north of $17.

As of around 9:50, Novy-Williams reported the shareholder vote has passed. It is expected that the market will have a new symbol to trade on as of April 24th, which will be DNKG. DraftKings is public.

DraftKings and SB Tech Combination 

As mentioned in a previous post:

“SBTech is a technology company, which has been focused on providing white labels to all types of betting operators. Given the combination of this technology company with DraftKings, it creates a unique ability to be free. Many operators rely on partnerships with tech companies, and now it is assumed DraftKings is now a part of the white labeling company, which will certainly rid the need for a third party and provide more revenue for the company. Having in-house technology is massive for a sportsbook (and online casino), and that is exactly what is achieved in this merger. DraftKings currently uses Kambi for its bookmaking technology, but that will not continue.”

With DraftKings having in-house technology, it increases the efficiency and maximizes the revenue potential for the company. With this reverse merger all but official, you can expect to see DraftKings trading publicly for the first time on April 24th.