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Mergers & Acquisitions

Big Funds Bet on DraftKings PIPE

By Paul Springer
Published: June 22nd, 2020
Caledonia and Capital Research are among the investors betting on a $304 million PIPE that helps take one of the world’s premier online gambling concerns public via a SPAC acquisition.

With the online gambling industry flourishing, DraftKings Inc.’s (DKNG) take-public SPAC closing has obtained more than $300 million in funding via a PIPE offering. And several major funds provided capital for the deal.

The PIPE transaction was disclosed on Wednesday, April 29.

Special purpose acquisition company Diamond Eagle Acquisition Corp. raised $350 million in an initial public offering last April, according to Private Raise, The Deal’s proprietary data service tracking private placements larger than $1 million.

Diamond Eagle is led by chairman and CEO Harry Sloan and president and CFO Eli Baker and co-founder Jeff Sagansky. Sagansky and Baker founded Diamond Eagle as well as SPACs Platinum Eagle Acquisition Corp. and Double Eagle Acquisition Corp. Sloan, along with Baker and Sagansky, are listed as founders of SPACs Silver Eagle Acquisition Corp. and Global Eagle Acquisition Corp.

A Harvard Business School MBA holder, Sagansky is a former president of CBS who produced movies such as “The Cost of Silence” and the “Four in the Morning” television series. He was also involved in development of television shows including “Cheers.”

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