DraftKings IPO Still a Go Proud Coronavirus Pandemic

<p>DraftKing’s IPO is still set for April, despite the ongoing effects of the new coronavirus pandemic.

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Jason Park, CFO of DraftKings, provided an update on the IPO plan. According to him, the US Securities and Exchange Commission has stated that its registration statement is effective. This puts the company closer to the completion of its IPO.

Park points out that the current plan still has DraftKing’s IPO, which ends in April. For this to happen, the plan must be approved by shareholders of Diamond Eagle Acquisition Corp. (NASDAQ: DEAC). They will vote on the IPO plan on April 23, Bloomberg reports.

It is worth noting that DraftKing’s IPO will not take place in a typical way. Instead, the company plans to go public through a reverse merger. This will be combined with Diamond Eagle Acquisition and SBTech.

The plans for the IPO for DraftKings were described at the end of last year. This has the reverse merger plan that keeps current CEO and founder Jason Robins leading the new company. The current leadership team will also remain in the company after the IPO.

DraftKing’s IPO will have the company’s market capitalization of $ 3.3 billion when the deal closes. The fantasy sports company has also already made an investment of 304 million dollars when the IPO is completed.

Diamond Eagle Acquisition has seen great jumps in its stock since announcing the deal with DraftKings. It also continues to see the DEAC share increase as the deal nears completion.

The DEAC share increased by 3.98% as of Friday afternoon.

At the time of writing, William White had no position in any of the above securities.