Golden Nugget Online Gaming Inc. (GNOG) shares have gained 50.33% to $18.44 on Monday morning. GNOG stock closed at $12.27 in the last trading session. So far today, GNOG stock has traded 1.91 million shares, which is higher than the average daily trading volume of 0.97 million shares over the last 50 days. GNOG stock has advanced 7.07% in the last five days, but it has gained 0.25% over the past month. GNOG shares have shed -6.76% over the last three months, and have shed -37.72 percent so far this year. As a result of an acquisition offer, GNOG stock is surging.
Who is buying GNOG Stock?
A leader in online gaming, Golden Nugget was the first to introduce Live Dealer and Live Casino Floor to the U.S. market and is considered a market leader by its peers. Awarded 15 eGaming Review North America Awards, including “Operator of the Year” honors in 2017, 2018, 2019, and 2020, GNOG has won several prestigious industry awards.
Golden Nugget and DraftKing signed a definitive agreement today. DraftKings has agreed to buy GNOG in an all-stock transaction. It is estimated that GNOG will receive approximately $1.56 billion in equity for the proposed transaction.
Transaction details:
- The transaction will also engage DraftKings in a holding company reorganization in which New DraftKings will be formed.
- DraftKings and GNOG will merge to form the new company, which will go public going forward.
- After the closing of New DraftKings, the company will be named DraftKings Inc. (“New DraftKings”).
- GNOG shareholders would receive 0.365 shares of New DraftKings’ Class A Common Stock (the “Exchange Ratio”) for each common share they hold on August 9, 2021 (the “Merger Agreement”).
- GNOG’s 46% beneficial owner, Tilman Fertitta, has agreed to hold the DraftKings shares he will receive in the merger for a minimum of one year following its completion.
- As a result of the Board’s approval, the Merger Agreement and the transaction will now be voted on by the stockholders of GNOG.
- A committee of independent and disinterested directors established by the GNOG Board (the “Special Committee”) unanimously recommended the offer for approval.
- The transaction has also been approved by the Board of Directors of DraftKings.
What will be the impact of GNOG’s acquisition?
Golden Nugget (GNOG) stockholders must approve the transaction, regulatory approvals must be received, and there are other customary closing conditions. The transaction is expected to close in the first quarter of 2022. As a result of this acquisition, DraftKings will gain access to GNOG’s popular brand, iGaming experience, and more than 5 million customer database.
