Reports: Genius Sports to Go Public in $1.5B Deal with dMY Technology
Genius Sports, a London-based company that provides data to sports betting companies, is going public with blank-check company dMY Technology Acquisition II in a $1.5 billion deal, according to published reports.
It’s the latest deal involving a gaming company and a special purpose acquisition company (SPAC), and believed to be the first involving a U.K. company, according to Sportico, a sports business website, and the Wall Street Journal. The deal should be complete in the first quarter of 2021 and Genius will list on the New York Stock Exchange (NYSE), the reports said
More companies are aligning with each other to take advantage of the growing U.S. sports betting and iGaming markets.
The $3.3 billion merger between Golden Diamond Acquisition Corp., and DraftKings, the daily fantasy and sports wagering giant based in Boston, has been the most noteworthy digital gaming/sports wagering SPAC. That merger led to publicly held DraftKings trading on the Nasdaq beginning April 23.
The success of DraftKings — it closed on its first day of trading at just over $19 and on Monday it closed at $39.69 — has led to other mergers and formation of other SPACs.
In late June, Golden Nugget Online Gaming was acquired by Tilman J. Fertitta and Landcadia Holdings II Inc., which trades on Nasdaq. The combined company was valued at about $745 million or about six times Golden Nugget’s estimated 2021 revenue of $122 million.
Just last week, Tekkorp Digital Acquisition Co., a SPAC looking at digital gaming and related businesses, became a publicly traded company. Tekkorp on Oct. 22 announced the pricing of its initial public offering of 25 million units at $10 per unit and said it would list on Nasdaq under “TEKKU.”
The company lists current and former gaming company executives among its leadership and its board, including Morris Bailey, board chairman, and Tony Rodio, a board member. Bailey owns Resorts Casino & Hotel in Atlantic City and Rodio was recently the CEO of Caesars Entertainment.
Another SPAC with gaming interests, Acies Acquisition Corp., has filed with the SEC to register and go public in December. Acies, whose founders include Jim Murren, former chairman and CEO of MGM Resorts International, is seeking $200 million in its initial public offering, according to its recent SEC filing.
Genius Sports & Streaming
Genius Sports and PointsBet announced a deal on Oct. 9 making PointsBet the first U.S. operator to sign on with Genius Sports’ Streaming product.
PointsBet will have access to live streaming of sports events along with accompanying data from Genius Sports. It will give PointsBet customers the opportunity to wager during games.
Among the major sports organizations that Genius Sports has deals with are the NCAA, NBA and NASCAR.
Rush Street-dMY Merger
The dMY Technology Group is no stranger to sports-betting companies. Rush Street Interactive merged with dMY Technology I on July 27 in a $1.8 billion deal and the online sports betting and gaming operator went public. The merged company will be traded on the New York Stock Exchange under “RSI.”
In addition to Rush Street and Genius Sports mergers, dMY Technology Group has filed paperwork with the SEC for a third SPAC and is looking to raised $250 million, according to an SEC filing.
The dMY Technology Group was founded by Niccolo de Masi, former Glu Mobile CEO, and Harry You, a former EMC Corp. executive. It raised $230 million in an initial public offering in February 2020 that led to the Rush Street merger, the SEC filing said. The pair then founded dMY II and raised $276 million in an initial public offering in August 2020 for the Genius Sports deal.
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