DraftKings Statement Regarding Entain
DraftKings (NASDAQ: DKNG) announced it will not pursue a firm offer for Entain after discussions with its board. CEO Jason Robins expressed confidence in DraftKings' capabilities to lead in the North American market, emphasizing its technology and brand strength. Due to this announcement, DraftKings is subject to Rule 2.8 restrictions for six months, limiting further approaches for a potential acquisition unless specific conditions are met. DraftKings aims to focus on maintaining its growth trajectory within the digital sports entertainment sector.
- DraftKings maintains confidence in its technology stack and brand strength.
- Emphasis on long-term growth plans in the North American market.
- DraftKings will not be pursuing a potentially lucrative acquisition of Entain.
BOSTON, Oct. 26, 2021 (GLOBE NEWSWIRE) -- DraftKings (NASDAQ: DKNG) confirms that, following further analysis and discussions with the Entain board of directors, it will not make a firm offer for Entain.
Commenting on this, Jason Robins DraftKings CEO, Co-Founder and Chairman of the Board said:
“After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time. Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”
As a result of this announcement, DraftKings is bound by the restrictions under Rule 2.8 of the Code for six months following the date of this announcement.
For the purpose of Rule 2.8 of the Code, DraftKings reserves the right to set aside the above statement and the restrictions in Rule 2.8 of the Code in the following circumstances:
| (i) | with the agreement of the board of directors of Entain; |
| (ii) | following the announcement of a firm intention to make an offer for Entain by or on behalf of a third party; |
| (iii) | following the announcement by Entain of a “whitewash” proposal (as described in Note 1 of the Notes on Dispensations from Rule 9 of the Code) or a reverse takeover (as defined in the Code); or |
| (iv) | where the Takeover Panel has determined that there has been a material change of circumstances. |
About DraftKings
DraftKings Inc. is a digital sports entertainment and gaming company created to fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming and digital media. Headquartered in Boston, and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings is a multi-channel provider of sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. DraftKings’ Sportsbook is live with mobile and/or retail betting operations in the United States pursuant to regulations in Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Michigan, Mississippi, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Tennessee, Virginia, West Virginia, and Wyoming. DraftKings’ daily fantasy sports product is available in 7 countries internationally with 15 distinct sports categories. DraftKings is the official daily fantasy partner of the NFL, MLB, NHL, NASCAR, PGA TOUR and UFC as well as an authorized gaming operator of the NBA, an official sports betting partner of the NFL, MLB and NHL an official betting operator of PGA TOUR and the official betting operator of UFC. Launched in August 2021, DraftKings Marketplace is a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions. DraftKings also owns Vegas Sports Information Network, Inc. (VSiN), a multi-platform broadcast and content company.
Inquiries
| DraftKings Inc. | |
| Press: Investor Relations: Joe DeCristofaro | Media@draftkings.com investors@draftkings.com +1 617 986 6744 |
The Raine Group, financial adviser to DraftKings Inc. | +44 20 3695 8600 |
| John Salter Colin Neville Jason Schretter Brett Varsov Garrett Gomes | |
Credit Suisse, financial adviser to DraftKings | +44 20 7888 8888 |
| Michael Kamras Joe Hannon Ben Deary Matt Hall (Corporate Broking) |
Important Notices
This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities or the solicitation of any vote in any jurisdiction whether pursuant to this announcement or otherwise, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The release, publication or distribution of this announcement in whole or in part, directly or indirectly, in, into or from certain jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions. Any failure to comply with such restrictions may constitute a violation of the securities laws of any such jurisdiction.
Financial Advisers
Raine Advisors Limited (“Raine”), which is an Appointed Representative of Sapia Partners LLP, an entity which is authorised and regulated in the United Kingdom by the Financial Conduct Authority (FRN: 550103), is acting as financial adviser exclusively for DraftKings and no one else in connection with the matters set out in this announcement and will not be responsible to any person other than DraftKings for providing the protections afforded to clients of Raine, nor for providing advice in relation to the content of this announcement or any matter referred to herein. Neither Raine nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Raine in connection with this announcement, any statement contained herein or otherwise.
Credit Suisse International (“Credit Suisse”), which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK, is acting as financial adviser exclusively for DraftKings and no one else in connection with the matters set out in this announcement and will not be responsible to any person other than DraftKings for providing the protections afforded to clients of Credit Suisse, nor for providing advice in relation to the content of this announcement or any matter referred to herein. Neither Credit Suisse nor any of its subsidiaries, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Credit Suisse in connection with this announcement, any statement contained herein or otherwise.
Website
In accordance with Rule 26.1(a)(ii) of the Code, a copy of this announcement will be available (subject to certain restrictions relating to persons resident in certain restricted jurisdictions) on DraftKings’ website (at https://DraftKings.gcs-web.com) by no later than 12 noon (London time) on 27 October 2021 (being the business day following the date of this announcement). The content of such website is not incorporated into, and does not form part of, this announcement.
Important Information for US Investors
In the event that DraftKings enters into any transaction with respect to Entain (a “Transaction”), DraftKings may be required to file certain relevant documents with the U.S. Securities and Exchange Commission (the “SEC”). Such documents, however, are not currently available. INVESTORS ARE URGED TO READ ANY DOCUMENTS REGARDING A TRANSACTION IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors will be able to obtain a free copy of such filings without charge, at the SEC’s website (http://www.sec.gov) once such documents are filed with the SEC.
No securities to be issued in connection with a Transaction have been registered under U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and no securities will be offered or sold in the United States in connection with a Transaction unless pursuant to registration under the U.S. Securities Act or pursuant to an applicable exemption from the registration requirements of the U.S. Securities Act. A Transaction involving a scheme of arrangement may involve the issuance of securities in reliance upon the exemption from the registration requirements of the U.S. Securities Act provided by Section 3(a)(10) thereof, and would be subject to local disclosure requirements (which disclosure requirements would be different from those of the United States). A Transaction involving a tender offer would be subject to applicable rules under the U.S. Securities Exchange Act of 1934, as amended, including any applicable exemptions provided under Rule 14d-1(d) thereunder.
FAQ
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