DraftKings ends 2020 with strong Q4 showing as revenue grows 98% igamingbusiness.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from igamingbusiness.com Daily Mail and Mail on Sunday newspapers.
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DraftKingsâ [DKNG] share price was up 29.4% so far in 2021 (through 24 Februaryâs close), having grown 262.2% in the last 12 months. The headline story for the stock in 2020 was its reverse merger with special-purpose acquisition company (SPAC) Diamond Eagle Acquisition Corp and gaming technology firm SBTech, which took the company public on 24 April.
Since its market debut, DraftKingsâ share price has grown 211.5%, as of 24 Februaryâs close. However, the stock had recently fallen 9.14% since hitting an intraday high of $64.78 on 8 February (its all-time closing high was $63.87 on 5 February).
DraftKings is due to announce its fourth quarter earnings results before markets open on 26 February.
In late 2019, Boston, Massachusetts-based DraftKings publicly announced their intentions to become a publicly-traded company. The online gambling and gaming firm had experienced several years of growth and, following a Supreme Court ruling that lifted a previous ban on sports betting, had its eyes on capitalizing its good fortune. Rather than raising capital through an initial public offering (IPO), the company opted to enter into a deal with Diamond Eagle Acquisition Corp., a shell company that existed solely for the purpose of acquisition. This type of company, commonly known as a special-purpose acquisition company (SPAC) allows private firms to become publicly traded and listed on stock exchanges without the time, capital, and regulatory expenditures required in a traditional IPO.
SPAC Rush Leads Active ETF to Go All In on Blank-Check Firms
Bloomberg 1/21/2021 Michael Bellusci
(Bloomberg) The world’s first actively managed exchange-traded fund that invests in blank-check companies is doubling down on the red-hot SPAC market at the expense of its other strategy, merger arbitrage.
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The Accelerate Arbitrage Fund was launched in April by Julian Klymochko, the founder and chief executive of Calgary-based Accelerate Financial Technologies. The firm invests in special purpose acquisition companies, or SPACs, before they’ve announced deals, and also incorporates merger arbitrage, which aims to capitalize on the spread between a target’s stock price and the offer price before a deal closes.