Another IPO through merger is on the horizon . According to media reports, the Moblie gaming platform Skillz Inc plans to go public through a merger which will put additional pressure on DKNG stock price.
As the Wall Street Journal reports , the mobile gaming platform Skillz wants to go public through a merger with Flying Eagle Acquisition Corp, a blank-check company.
Overall, not only the 690 million dollars from the merger with Flying Eagle, but also another 159 million dollars thanks to investors Wellington Management, Fidelity Investments, Franklin Templeton Investments and Neuberger Berman, will flow into the coffers of Skillz. The merger increases the enterprise value of the mobile gaming platform to $ 3.5 billion.
After the merger with Flying Eagle, Skillz founder Andrew Paradise will remain CEO of the company. Harry E. Sloan, CEO of Flying Eagle, joins the Board of Directors. Sloan had already brought the sports betting company DraftKings to the stock exchange in April.
Besides Draftkings and Skillz, another betting company (Golden Nugget) is set to hit the NASDAQ stock exchange via merger. According to Investor Place, Landcadia Holdings (NASDAQ:LCA) will merge with Golden Nugget Online Gaming and the new symbol will be GNOG. That is also when a good number of investors may take a position in the merged company. Right now a date has not been set, but the merger is likely to occur sometime in September or October.
So, once we see all these mergers finished there will be not one but 3 major companies competing for the title of the best online betting app.