DraftKings SPAC Presentation Deck
Proposed Transaction Summary
Diamond Eagle Acquisition Corp. is a publicly listed special purpose acquisition vehicle with
over $400 million in cash
DEAC has agreed to combine with DraftKings and SBTech
Values the combined DK and SBT business at $2.7 billion (based on book value
of DEAC)
Represents an attractive entry multiple of 3.9x 2021 E revenue; projected annual
revenue growth of 30%+ as states legalize and launch sports betting and iGaming
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Post-closing, the combined company will have a dual class shareholder structure with super
voting rights comprised of Class A common stock, which will carry one vote per share, and
Class B common stock, which will carry 10 votes per share. Jason Robins will hold Class A and
Class B common stock such that he will hold approximately 90% of voting power
Concurrent with this transaction, DK and DEAC have raised $414 million (2) in committed PIPE
equity from select investors
After giving effect to the transaction (assuming no redemptions), the company will have over
$500 million of unrestricted cash with public equity currency to ensure access to capital to
fuel growth
Note: DraftKings may increase the PIPE size between transaction announcement and close. Figures may not foot due to rounding.
(1) Cash held in the trust account as of December 31, 2019.
(2) Includes $109.2 million in DK convertible notes that convert to PIPE shares. This amount does not count toward the determination of the satisfaction of the
Minimum Proceeds Condition under the BCA.
(3) Assumes no redemptions from DEAC's trust account.
(4) Represents SBT cash consideration converted to USD at 1.116 USD/EUR.
(5) Represents total seller equity value including value of outstanding vested options.
(6) Includes 80,000 founder shares that have been transferred to DEAC's independent directors
(7) Estimated transaction-related costs include $14.0 million in deferred underwriting commissions related to DEAC's initial public offering, estimated cash amount to be paid
to stockholders of DraftKings that are deemed to be non-accredited investors, and payment of $10.0 million in bonuses to management of DraftKings upon close of the
Business Combination.
(8) Includes shares issuable pursuant to vested DK and SBT options and warrants that will be rolled over at Closing. Excludes DEAC warrants and earnout shares.
($ in millions)
Sources
DRAFT
KINGS
ILLUSTRATIVE SOURCES AND USES(3)
DEAC Cash in Trust¹)
PIPE Investment²)
Sellers' Equity (5)
DEAC Upfront Founder Equity (6)
Total
PF Share Count (Shares in 000's)
Sellers' Rollover Equity
DEAC Shareholders
PIPE Investors
Diluted Shares
Outstanding
250,774
43,659
41,747
$404
336,179
414
2,700
37
SBTech
we know sports
$3,555
Uses
Cash to Balance Sheet
Cash to SBT Shareholders(4)
Sellers' Equity (5)
SPAC Upfront Founder Equity (6)
ILLUSTRATIVE PRO FORMA OWNERSHIP AT CLOSE(3),(8)
Transaction Fees (7)
Total
75%
13%
12%
$532
201
2,700
PIPE Investors(2)
37
85
$3,555
DEAC Shareholders
Sellers' Rollover Equity
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