diamond eagle acquisition corp spac

Goldman Sachs and Credit Suisse are acting as private placement agents to Diamond Eagle. When former unicorn darling WeWork set out to go public in 2019, its IPO imploded as its business model and co-founder Adam Neumann's management came under intense scrutiny. A high-level overview of Diamond Eagle Acquisition Corp. (DEAC) stock. The team behind Flying Eagle has some experience in this area. Sloan and Baker’s special purpose acquisition company (SPAC), Soaring Eagle Acquisition Corp, declined to comment, while the SEC did not immediately respond to … Sloan and Sagansky's other SPAC — Diamond Eagle Acquisition Corp. — brought sports-betting company DraftKings Inc. (NASDAQ: DKNG) in … So a SPAC has no commercial operations — it makes no products and does not sell anything. Here's what you need to know about SPACs. Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are acting as capital markets advisors. The SPAC originally raised $350 million in May 2019, listing its units under the symbol DEACU, which comprised common shares and 1/3 warrants. The group officially filed to register a new SPAC, Spinning Eagle Acquisition Corp, two days before Christmas. We don’t have any of the financials for DraftKings or SBTech yet, but a 3.9x 20. And since DraftKings is a highly recognizable brand, this transaction should get a lot of coverage now as well. Notably, Sagansky, Baker, and Sloan were the brains behind Diamond Eagle Acquisition Corp. Per the December 23rd filing, Spinning Eagle Acquisition Corp will aim to sell 150 million units for a price of $10 each to total $1.5 billion, with each individual unit offering 1/5th of a warrant to purchase a common share for $11.50. When the investors approved the merger, the SPAC’s common shares traded at $17.53, a 75% return from the $10 offer price. And clearly, investors seem to like this deal since the share price zoomed to ~$10.70 this morning, significantly above their current estimated trust value. The deal marks the second SPAC deal for Sloan and Sagansky this year. They’ve been acquired by the SPACs Diamond Eagle Acquisition Corp., Social Capital Hedosophia, and VectorIQ Acquisition Corp., respectively. Sloan and Sagansky’s most recent SPAC, Flying Eagle Acquisition Corp., ... when they took DraftKings public last year through their Diamond Eagle. Many companies chose to postpone their IPOs (for fear that the market volitlity could spoil their stock's public debut). DraftKings is combining with Diamond Eagle Acquisition Corp., a SPAC with a market cap of roughly $500 million, and SBTech, a betting and gaming technology company. Diamond Eagle Acquisition Corp. (DEAC) announced this morning that they have entered into a Business Combination Agreement with DraftKings and SBTech, to create the only vertically-integrated U.S.-based sports betting and online gaming company. Which is good. © 2021 SPACInsider | Theme by Theme Ansar, Diamond Eagle (DEAC) to Combine with DraftKings & SBTech, entered into a Business Combination Agreement, After Double-Digit Fall, Is It Time for a Bullish DraftKings Stock Bet? The executives behind Diamond Eagle… In December, the duo’s fifth blank-check company, Diamond Eagle Acquisition Corp, was part of three-way deal that will see sports betting giant … Diamond Eagle is the fifth SPAC set up by serial dealmaker Sagansky, who founded Diamond Eagle with investor Harry Sloan. Suze Orman: The biggest mistake young people make when investing, How millennials have been affected by unemployment during coronavirus, 23 Black leaders who are shaping history today, Doomsday preppers spend on survival kits, emergency food supplies and shelter, Amex launches a $200 statement credit offer for the Amex Blue Cash Everyday Card. Once the IPO raises capital (SPAC IPOs are usually priced at $10 a share) that money goes into an interest-bearing trust account until the SPAC's founders or management team finds a private company looking to go public through an acquisition. The SBTech management team who bring the international markets, trading and risk management experience will also be integrated into the organization. All told, DraftKings is a nice high profile name for a SPAC and it’s already generated a lot of excitement, but it’s just day-one. For instance, Diamond Eagle Acquisition Corp. was set up in 2019 and went public as a SPAC that December. Usually a SPAC is created, or sponsored, by a team of institutional investors, Wall Street professionals from the world of private equity or hedge funds, while even high-profile CEOs like Richard Branson and fellow billionaire Tilman Fertitta have jumped on the trend and formed their own SPACs. No days off in SPAC Land…. So what exactly is a SPAC? And why are investors lining up to jump on the trend? However, the nuts and bolts of it are that each of DEAC, DraftKings and SBTech are entitled to a number of earnout shares that are triggered at $12.50, $14.00 and $16.00, for one-third portion at each trigger (if you’re a subscriber, go to the. DIAMOND EAGLE ACQUISITION CORP. (Exact name of registrant as specified in its charter) D e l aw are 001-38908 83-4578968 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) That's because when a SPAC raises money, the people buying into the IPO do not know what the eventual acquisition target company will be. Additionally, DEAC and DK have raised a $380 million PIPE, with $76 million of that total in the form of a convertible note that converts to shares at closing. Earnouts are generally a positive since they incentivize management to perform, but since this combination has a complicated earnout, perhaps it was left out since it doesn’t read all that easily. Goldman Sachs is acting as exclusive financial advisor to Diamond Eagle. Veteran Hollywood executives Jeff Sagansky and Harry Sloan are launching Diamond Eagle Acquisition Corp. with a $400 million initial public offering. Diamond Eagle Acquisition Corp. operates as a blank check company. At that time, the SPAC was trading below $20. The SPAC originally raised $350 million in May 2019, listing its units under the symbol DEACU, which comprised common shares and 1/3 warrants. There is also buzz that digital media companies like BuzzFeed, Vice Media, Bustle Media Group and others could use SPACs to finally bring in money for their investors. SPACs have been around for decades and often existed as last resorts for small companies that would have otherwise had trouble raising money on the open market. Diamond Eagle Acquisition is … It merged with SPAC Diamond Eagle Acquisition Corp. and went public on April 29, 2020, trading at $19.40. Now, the office space leasing start-up is in talks to go public via a different manuever: It's considering using a SPAC, or special purpose acquisition company, one of the hottest trends on Wall Street. However, the headline details are that this transaction has an implied enterprise value of $2.7 billion, with an implied equity value of $3.3 billion and the combined company will have over $500 million of unrestricted cash on the balance sheet at closing. Playboy will be going public again after merging with the Mountain Crest Acquisition Corp. SPAC. The SPAC is seeking … Also, in a SPAC merger, the target company is able to negotiate its own fixed valuation with the SPAC sponsors. When the investors approved the merger, the SPAC’s common shares traded at $17.53, a 75% return from the $10 offer price. American flags hang from the facade of the New York Stock Exchange (NYSE) building in New York January 28, 2021. Those betting DraftKings was due for the public markets may have just hit pay dirt. Once an acquisition is completed (with SPAC shareholders voting to approve the deal), the SPAC's investors can either swap their shares for shares of the merged company or redeem their SPAC shares to get back their original investment, plus the interest accrued while that money was in trust. ", Billionaire Ray Dalio bought his first stock at age 12 — here's his lesson for young investors, DoorDash IPO will make its CEO a billionaire — here's how his immigrant parents inspired his success, Don't miss: The best credit cards for building credit of 2021, Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, © 2021 CNBC LLC. And investors are literally going blindly into the investment. Half the battle with SPACs is getting the attention of sector investors. DraftKings merged with Diamond Eagle Acquisition in April 2020. LOS ANGELES, CA January 6, 2020 – Diamond Eagle Acquisition Corp. (Nasdaq: DEAC) (“Diamond Eagle”), a publicly traded special purpose acquisition company led by Harry Sloan and Jeff Sagansky, announced today that its subsidiary, DEAC NV Merger Corp., has filed with the U.S. Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 (the … Raine Group is acting as exclusive financial advisor to DraftKings. Additional info below. A high-level overview of Diamond Eagle Acquisition Corp. (DEAC) stock. WeWork is just the latest in a growing list of companies: Virgin Galactic, DraftKings, Opendoor and Nikola Motor Co. have all gone public by merging with SPACs. Spinning Eagle Acquisition Corp: A new SPAC called Spinning Eagle Acquisition Corp filed for registration on December 23. Nikola. The new DraftKings will continue to be led by co-founder and CEO Jason Robins and will retain DraftKings’ management team, including co-founders Paul Liberman and Matt Kalish. - Value Spots, As for those “items that stood out”, first and foremost, the, There is also an earnout, but it’s not highlighted in the press release or presentation. Diamond Eagle Acquisition Corp., led by Sloan, announced Wednesday that it had received the approval from the Securities and Exchange Commission and is now moving to … In fact, the SPAC's only assets are typically the money raised in its own IPO, according to the SEC. Deutsche Bank AG and Goldman were the underwriters of Diamond Eagle Acquisition Corp., the SPAC that late in 2019 agreed to merge with DraftKings. The executives behind Diamond Eagle… As for the transaction, the press release and presentation were a little opaque on structure details, however, after combing through the filed documents a few items stood out (skip to below if you’d like to read that first). It is illegal for insiders to make trades in their companies based on material, non-public information ("MNPI"). However, SPAC sponsors also have a deadline by which they have to find a suitable deal, typically within about two years of the IPO. Founded by media executive Jeff Sagansky and founding investor Harry Sloan, Diamond Eagle Acquisition Corp. was formed for … Before it was Draft Kings, it was Diamond Eagle Acquisition Corp. The Flying Eagle Acquisition IPO, announced late Thursday, was priced at $10 per unit for 60 million unit. Recent SPAC examples. Diamond Eagle Acquisition Corp. (Nasdaq: DEAC) ("Diamond Eagle"), a publicly traded special purpose acquisition company led by Harry Sloan … Six months later, DKNG peaked above $64. Quick takes:  There was a leak about this deal back at the end of October that was widely reported and it seemed to generate a significant amount of interest. Playboy will be going public again after merging with the Mountain Crest Acquisition Corp. SPAC. Sloan and Sagansky’s most significant SPAC deals to date involved their fifth and sixth vehicles, Diamond Eagle Acquisition Corp. and Flying Eagle Acquisition Corp. DraftKings. Stifel is acting as financial advisor and Herzog, Fox & Neeman and Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal advisors to SBTech. DKNG is a digital sports entertainment and gaming company headquartered in Boston. Example 3: NKLA. Short-seller Carson Block agrees with Blankfein, calling the SPAC trend the "Great 2020 Money Grab" in a paper for his firm, Muddy Waters Research, in which he writes that "a business model that incentivizes promoters to do something — anything — with other people's money is bound to lead to significant value destruction on occasion. For instance, Diamond Eagle Acquisition Corp. was set up in 2019 and went public as a SPAC that December. Diamond Eagle merged with DraftKings, creating the only pure-play sports betting company. A Division of NBC Universal. The stock has gained more than 165% since its March lows. There is also a $400 million minimum cash closing condition, after redemptions and proceeds from the PIPE, so DEAC only needs to retain $20 million in trust, post-vote, in order for this transaction to close. It also acquired SBTech. That's also why a SPAC is also often called a "blank check company.". It was trading at $38.15 on October 28. Home » Weekly IPO Updates » INTEL » Diamond Eagle (DEAC) to Combine with DraftKings & SBTech. – Tradersville, After Double-Digit Fall, Is It Time for a Bullish DraftKings Stock Bet? About SRNG Soaring Eagle Acquisition is a blank check company incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. For those needing a program to tell who’s who, Diamond Eagle Acquisition is the fifth SPAC for Hollywood executives Harry Sloan and Jeff Sagansky. The SPAC served as a launchpad for the sports betting juggernaut DraftKings (NASDAQ: DKNG) to go public earlier this year. Sloan and Baker’s special purpose acquisition company (SPAC), Soaring Eagle Acquisition Corp, declined to comment, while the SEC did not immediately respond to … Investors that got in on the Diamond Eagle IPO in May 2019 at $10 made more than 500% in just 16 months. Examples of high-profile SPAC deals include gambling company DraftKings Inc., which went public through a reverse merger with Diamond Eagle Acquisition Corp. in April, and electric-vehicle maker Nikola Corp., which merged with VectoIQ Acquisition Corp. in June. Pershing Square Tontine marked the largest SPAC to ever go public, according to Renaissance Capital, raising $4 billion. This company runs fantasy sports games and lets people make legal wagers on sporting events. A special purpose acquisitions company is essentially a shell company set up by investors with the sole purpose of raising money through an IPO to eventually acquire another company. Diamond Eagle Acquisition Corp. (DEAC) announced this morning that they have entered into a Business Combination Agreement with DraftKings and SBTech, to create the only vertically-integrated U.S.-based sports betting and online gaming company. A $3.3 billion SPAC merger was announced between Diamond Eagle Acquisition Corp. and the combined entity of DraftKings, Inc., and SBTech (Global) Limited in a simultaneous three-party transaction. PROPOSED BUSINESS COMBINATION: DraftKings Inc. Diamond Eagle Acquisition Corp. operates as a blank check company. A SPAC IPO gave the company money sooner than later and brought guaranteed investors. What would make some companies pick a SPAC over an IPO? DraftKings, as many of you with an interest in sports already know, is a digital sports entertainment and gaming company known for its daily fantasy sports and mobile sports betting platforms. It then announced a merger with … But they've recently become more prevalent because of the extreme market volatility caused, in part, by the global pandemic. SPACs lined up for 2021, include Bill Gates-backed portable ultrasound start-up Butterfly Network (valuing the company at $1.5 billion) and DNA-testing startup 23andMe is reportedly in talks to go public through a $4 billion deal. Diamond Eagle Acquisition Corp., a Century City-based blank check company formed by two veteran Hollywood executives, raised more than $400 million in its trading debut May 10. Real time Diamond Eagle Acquisition Corp. (DEAC) stock price quote, stock graph, news & analysis. ESTIMATED CURRENT FUNDS in TRUST: $405.0 million* CURRENT PER SHARE REDEMPTION PRICE: $10.12* EQUITY VALUE: $3.6 billion *SPACInsider estimate a/o 4-23-20 Diamond Eagle Acquisition Corp… Diamond Eagle Acquisition Corp. (Nasdaq: DEACU), the fifth public acquisition vehicle led by media executive Jeff Sagansky and founding investor Harry Sloan, today announced the pricing of a $400 million initial public offering. Blankfein also said that SPAC sponsors, who are mostly tasked with finding a workable acquisition within two years and not necessarily the best possible deal, are not incentivized to avoid having the SPAC overpay for the target company. It’s not a given. It then announced a merger with DraftKings and gambling tech platform SBTech. This deal saw the Diamond Eagle Acquisition Corporation SPAC merging with DraftKings in a deal worth $3.3 billion. The SPAC is seeking to sell 150 million units at $10 each to raise $1.5 billion. For those needing a program to tell who’s who, Diamond Eagle Acquisition is the fifth SPAC for Hollywood executives Harry Sloan and Jeff Sagansky. The former Sony Corp. and CBS executive’s previous SPAC, Platinum Eagle Acquisition Corp., agreed to buy two lodging companies last year. Spinning Eagle Acquisition Corp: A new SPAC called Spinning Eagle Acquisition Corp filed for registration on December 23. DraftKings began trading as a public company when the deal closed in April. So by combining both DraftKings and SBTech, you get an innovative platform at the vanguard of gaming. Flying Eagle is a special purpose acquisition company, or SPAC. However, it should be interesting to see how investors feel about the dual class structure for the share and 10:1 voting rights, since it distributes the risk unequally. DraftKings is combining with Diamond Eagle Acquisition Corp., a SPAC with a market cap of roughly $500 million, and SBTech, a betting and gaming technology company. Of course, there are still risks with SPACs. About Diamond Eagle Acquisition Corp. In fact, roughly 200 SPACs went public in 2020, raising about $64 billion in total funding, nearly as much as all of last year's IPOs combined, according to Renaissance Capital. Diamond Eagle Acquisition Corp., led by Sloan, announced Wednesday that it had received the approval from the Securities and Exchange Commission and is now moving to the final step in the process. The daily fantasy company and recent entrant in to the sports betting scene has agreed to a merger with special purpose acquisition company Diamond Eagle Acquisition Corp. that will bring the Boston-based company public. The SEC defines Insiders as officers, directors, or significant investors (greater than 10% ownership) in a company. The Special Purchase Acquisition Company (SPAC) trend continues. Investors who bought Diamond Eagle shares on its IPO debut have quadrupled their investment. SPAC: SRNG - Soaring Eagle Acquisition Corp. - All information you need to know about the SPAC: SRNG - Soaring Eagle Acquisition Corp. Latest Price: … Trust Me While some high-profile SPACs have performed reasonably well (DraftKings and Virgin Galactic have both seen their stock prices grow since going public), advisory firm Renaissance Capital found that the average returns from SPAC mergers completed between 2015 and 2020 fell short of the average post-market return for investors from an IPO. The SPAC sponsors typically get about a 20% stake in the final, merged company. 2121 Ave n … A $3.3 billion SPAC merger was announced between Diamond Eagle Acquisition Corp. and the combined entity of DraftKings, Inc., and SBTech (Global) Limited in a simultaneous three-party transaction. Each unit issued in the initial public offering consists of … Deutsche Bank AG and Goldman were the underwriters of Diamond Eagle Acquisition Corp., the SPAC that late in 2019 agreed to merge with DraftKings. In April 2020, the online sports betting company DraftKings merged with Diamond Eagle Acquisition. Soaring Eagle Acquisition Corp. has filed to go public with an IPO on the NASDAQ. Otherwise the SPAC is liquidated and investors get their money back with interest. Lastly, DraftKing founders and shareholder are rolling 100% of their equity and SBTech shareholders are rolling ~$450 million of equity value into the company. Each unit issued in the initial public offering consists of one share of Class A common stock and one-third of one warrant to purchase one share of … Diamond Eagle merged with DraftKings, creating the only pure-play sports betting company. The pro to a dual class structure is that protects against activist investors (among other pros and cons). Maybe there’s a reason for it, but without any numbers to look at, it’s hard to tell. Sullivan & Cromwell LLP is acting as legal advisor to DraftKings. Misalnya, Diamond Eagle Acquisition Corp. Didirikan pada 2019 dan go public sebagai SPAC … Real time Diamond Eagle Acquisition Corp. (DEAC) stock price quote, stock graph, news & analysis. Institutional investors with track records of success can more easily convince people to invest in the unknown. While the SPAC merger process does require transparency regarding the target company, former Goldman Sachs CEO Lloyd Blankfein told CNBC recently that the due diligence of the SPAC process is not as rigorous as a traditional IPO. SBTech, is an international turnkey provider of cutting-edge sports betting and gaming technologies. TRADING QUOTES CLICK ON A TAB BELOW: (Business Combination or IPO Details) to access the relevant details. Target companies run the risk of having their acquisition be rejected by SPAC shareholders. A SPAC merger allows a company to go public and get a capital influx more quickly than it would have with a conventional IPO, as a SPAC acquisition can be closed in just a few months versus the "grueling process" process of registering an IPO with the SEC, which can take up to six months. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Winston & Strawn LLP is acting as legal advisor to Diamond Eagle. But others chose the alternate route to an IPO by merging with a SPAC. purpose acquisition company, or SPAC — is essentially a shell corporation used to raise investment through a public offering. This page shows the track record and history of SLOAN HARRY insider trades in Diamond Eagle Acquisition Corp. Unit. Diamond Eagle provided about $700 million worth of funding to the company. Daily fantasy sports and betting company DraftKings went public through a reverse merger in April. As we saw with Virgin Galactic, once that first day buzz wears off, that’s when the real work begins. DraftKings also went public last year when it was acquired along with sportsbook technology developer SBTech by Diamond Eagle Acquisition Corp., yet another SPAC. SPAC simple-nya perusahaan cangkang yang didirikan oleh investor dengan tujuan mengumpulkan uang melalui IPO untuk akhirnya mengakuisisi perusahaan lain. Spinning Eagle Acquisition Corp. A new SPAC called Spinning Eagle Acquisition Corp filed for registration on December 23. The good news is, shareholders get to vote on that. In April 2020, DKNG became a public company when it completed a $3.3 billion merger with SPAC Diamond Eagle Acquisition Corp. A well-known SPAC team is launching a $1.5 billion offering that could be highly anticipated by investors given their history in the space. Sloan and Sagansky’s most significant SPAC deals to date involved their fifth and sixth vehicles, Diamond Eagle Acquisition Corp. and Flying Eagle Acquisition Corp. Diamond Eagle Acquisition, the fifth blank check company formed by entertainment veteran Jeff Sagansky, raised $350 million by offering 35 units at $10, as expected. It is that type of performance that has piqued interest in SPACs. DraftKings also went public last year when it was acquired along with sportsbook technology developer SBTech by Diamond Eagle Acquisition Corp., yet another SPAC. It has yet to identify a company to acquire. With large institutional investors and other billionaire backers launching SPACs left and right, the trend is unlikely to disappear overnight.

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