Going public via a special purpose acquisition company seems to be in vogue for sports-related entities, but DraftKings CEO Jason Robins said not all companies are fit for the route. DraftKings went public through a SPAC merger in April and its shares have jumped nearly 90% since then.
DraftKings’ valuation has gone from $3 billion to $13 billion since April. Morgan Stanley recently downgraded both DraftKings and Penn National Gaming to hold following big growth spurts this year.
SPACs in general are up 145% from a year ago. Allied Esports went public in 2019 through a SPAC and this summer it was reported both TopGolf and Rush Street Interactive are looking to go public through SPAC mergers. Last month, RedBird Capital launched a $500 million sports-focused SPAC — Oakland A’s executive Billy Beane joined — which is looking to target acquisitions in sports, media and data analytics.
Notable Earnings Reports This Week
9/1 – Wanda Sports Group, Shoe Carnival
9/2 – Sportsman Warehouse Holdings