Last Updated on April 15, 2020

One of the final hurdles in the DraftKings and Diamond Eagle merger has been cleared, as the United States Securities and Exchange Commission (SEC) has approved the merger. This merger will be between Diamond Eagle Acquisition Corp, SB Tech, and DraftKings to form one company (will be called DraftKings).

The full press release is here, via BusinessWire.

 

DraftKings and SB Tech Combine into One

The biggest news from this merger being approved by the SEC means that DraftKings now has access to everything SB Tech provides. For those wondering, this now means that DraftKings effectively is a part of a business that owns and operators SB Tech, a company that providers online sportsbook operators with the technology. For example, when you log onto a sportsbook that has SB Tech technology, that tech has been “white labeled” by a company, purchased or rented from SB Tech. Now, DraftKings essentially owns that company.

This is certainly big news for DraftKings, as it now has “in-house” technology which is a massive cost to other sportsbook operators who have to pay for white label solutions.

 

DraftKings Goes Public via DEAC

The stock $DEAC trades on the NASDAQ at around $15 per share, and with this approval of a merger that allows for the public to essentially invest in DraftKings and SBTech if they so choose. It trades under $DEAC, but the company is fully expected to become a brand under “DraftKings”, which is a far more recognizable term. At the time of this “announcement”, $DEAC was $11.50 per share. This news comes days after a suspected cyber attack on SBTech.

For more details, check out our full breakdown of the merger here. 

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Jason is the founder of ActionRush.com. The site is dedicated to reporting on the latest sports betting news, odds, and industry rumors.
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