There is news seemingly every day in the legal sports betting space, and the latest involves a popular gaming company going public. Wynn Interactive will be going public assuming the news of the merger goes through after all parties and third parties accept and ratify the merger.
Let’s take a look at the news from WynnBet’s merger with Austerlitz Acquistion Corp, from the news to the impact of the deal, and when we could see it completed.
Wynn Resorts Merges with Austerlitz Acquisition
The legal sports betting world continues to grow with yet another huge merger. This time, Wynn Resorts/Wynn Interactive is merging with Austerlitz Acquisition Corp in order to launch as a public company, bringing Wynn Interactive to the forefront. A press release was released on Monday, May 10th detailing the newest merger in the legal sports betting space.
Investors have another way to play the US online gaming space. Interesting timing given the sharp pull-back in the space over the past few weekshttps://t.co/wNqlkxztDr
— Chris Lynch (@ChrisLynchNJ) May 10, 2021
The deal was involved with two companies: Wynn Interactive and Austerlitz Acquisition Corporation. The merger is expected to be finished by the end of 2021, and the company will be public on the NASDAQ stock exchange. The symbol it will be traded with with the symbol “WBET”.
The founder of Austerlitz, Bill Foley mentions:
“I am excited to be a partner and future owner of Wynn Interactive. Wynn is the premier brand in gaming and luxury resorts and we believe our investment in Wynn Interactive fits the criteria for the type of company and management team with which we like to co-invest. I’m optimistic about the future of U.S. online casino gaming and sports betting and am confident in the ability of [CEO of Wynn Interactive] and the Wynn Interactive team to execute the business plan and exceed their financial projections against what will be a massive addressable market.”
Let’s take a look at the details of the new company, from a financial standpoint.
New Company will be worth $3.2B
The WynnBet brand is about to become more and more popular, as this new company is worth $3.2B at closing of the merger, per the press release. Here are some financial details of the new company, upon completion of the deal:
- $640M in cash available for funding and growth.
- Wynn Interactive is the majority owner.
- Expected to close by the end of 2021.
Expect the new company to be completed and available by the end of the 2021 year, upon being accepted by the necessary parties. The $640M in cash will help the company operate and grow under joint-leadership.
More details on the Wynn Resorts merger
The press released detailed many things about this merger, including the operative name “Wynn Interactive Ltd.” which will remain. Let’s look at some other details of this merger from the press release.
- Wynn Interactive includes WynnBet, BetBull, and WynnSLOTS.
- Wynn Interactive has access to 15 states, over 51% of the population.
- New company will grow that to 77%, with new states being added soon.
The CEO of Wynn Resorts and Chairman of Wynn Interactive was excited about the move. Matt Maddox (CEO) says:
“We are confident that this transaction will unlock the tremendous potential of Wynn Interactive to further accelerate growth and enable the business to capture the massive opportunity in North America. Bill Foley [of Austerlitz] is the ideal partner to ensure continued success – his track record with business combinations, extensive experience growing marquee consumer brands and partnering to maximize value in businesses like ours will be invaluable as we continue scaling.”
Interested in looking at the publicly available investor presentation? Here it is.
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