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DraftKings, Skillz SPAC Team Launch $1 5 Billion Spinning Eagle: What Investors Should Know

DraftKings, Skillz SPAC Team Launch $1 5 Billion Spinning Eagle: What Investors Should Know
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(DKNG), (FCAC) - DraftKings, Skillz SPAC Team Launch $1 5 Billion Spinning Eagle: What Investors Should Know

DraftKings Inc. (NASDAQ: DKNG) and Skillz Inc. (NASDAQ: SKLZ). Flying Eagle Acquisition raised $690 million with units that included one-third of a warrant in January 2020. The company announced their merger with Skillz, valuing the mobile gaming company at $3.5 billion. Diamond Eagle Acquisition raised $400 million in April 2019 with units that also included one-third of a warrant. The company merged with DraftKings in a deal that valued the sports betting company at $2.7 billion. The company also did deals that included Target Logistics, Williams Scotsman, Global Eagle Entertainment and Videocon, which is now part of Dish TV India. DraftKings has been one of the best performing SPACs of the year with shares trading at $52.11, up over 400% from their $10 offering price. Shares have traded as high as $63.78 this year.

Blank-check firm backed by Hollywood executive Sloan files for IPO

By Reuters Staff 1 Min Read (Reuters) -Spinning Eagle Acquisition Corp, a blank-check company founded by Hollywood executive Jeff Sagansky, on Wednesday filed to go public, seeking to raise up to $1.5 billion. The company intends to have its units listed on the Nasdaq under the ticker “SPNGU”. Sagansky, a former president of CBS Entertainment, along with Harry Sloan, an ex-chief executive officer of Metro-Goldwyn-Mayer, have taken companies like gaming firm Skillz Inc and sports betting platform Draftkings Inc public through special purpose acquisition companies (SPACs). SPACs are exchange-listed shell companies that raise money through initial public offerings and merge with firms by enticing them with shorter listing timelines. Such structures have raised a record total of more than $70 billion in the United States this year, making them one of the hottest Wall Street investment trends of 2020.

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