DraftKings Invests in SPAC Merging with Vivid Seats

DraftKings (NASDAQ:DKNG) announced today it’s providing common soldier investiture inwards public equity (PIPE) to Horizon Acquisition Corp. (NYSE:HZAC) — the special design acquisition fellowship (SPAC) coming together with online just the ticket market Vivid Seats.

Todd Boehly’s Eldridge Industries, an affiliate of Horizon’s sponsor, Horizon Sponsor, LLC, is entering into the accord with DraftKings. Los Angeles Dodgers co-owner Boehly is the founder of Horizon Acquisition and testament dish up as a director on the Vivid Seats board. The exact amount of DraftKings’ PIPE wasn’t revealed.

The investment funds testament be division of the antecedently proclaimed PIPE funding for the transaction, with DraftKings assuming a portion of Eldridge’s commitment,” according to a statement.

When Horizon and Vivid Seats proclaimed merger plans inwards April, the dealings was precious at $1.95 billion, including $769 one thousand thousand in revenue proceeds to be directed to the net just the ticket broker. Of that $769 million, $225 one thousand thousand was slated to be PIPE from Boehly’s Eldridge Industries and Fidelity. DraftKings is pick upwards a portion of that tab.

Potentially Sweet Deal for DraftKings

Through the PIPE commitment, DraftKings is getting an asset that could appreciate.

“As component of the investment, Eldridge has agreed to bring home the bacon DraftKings the alternative to sell its Vivid Seats shares to Eldridge on the business organisation twenty-four hour period followers the first-class honours degree anniversary of Horizon and Vivid Seats’ business concern combining closure at toll of $9.77 per share, in condition(p) upon DraftKings continuously holding the Vivid Seats shares until such date,” according to the statement.

News of DraftKings’ investment funds sent the SPAC shares higher by 11.5 percent inwards midday trading on loudness that’s already to a greater extent than triple the daily average. That indicates that piece a slew of de-SPACed companies are tumbling this year, the DraftKings gens carries plenteousness of cache in the investment community.

Vivid Seats’ merger with Horizon Acquisition is expected to come together on Oct. 18, with the mark making its debut as a standalone public companion the following day. It will trade in on the Nasdaq under the ticker “SEAT.”

Other DraftKings, Horizon Ties

DraftKings cofounder and CEO Jason Robins is an consultant to another Boehly SPAC – Horizon Acquisition Corp. II (NYSE: HZON).

Earlier this year, rumors swirled that the blank-check troupe was come together to a merger with sports betting data provider Sportradar (NASDAQ:SRAD). But that deal strike down apart, prompting Sportradar to act on a traditional initial public offering.

DraftKings itself came to securities industry via a blank-check merger. Horizon Acquisition Corp. II has in time to denote another merger partner, and it has nearly a yr left hand to make so, or risk of exposure liquidation.

In 2017, Boehly’s Eldridge Industries made a $100 billion investiture inward DraftKings.