Last year The Provincial Institute of Lottery and Casino (IPLyC) in Buenos Aires received 14…
Posted on: March 1, 2021, 12:08h.
Final up to date on: March 1, 2021, 01:44h.
Todd Shriber Learn Extra
Just some days into life as an organization listed on a significant US trade, Rating Media & Gaming (NASDAQ:SCR) is a topic of takeover rumors which are sending shares of the Canadian firm hovering at the moment.
Rating Media CEO John Levy, seen right here. His firm is rumored to be a possible goal for DraftKings. (Picture: Globe and Mail)
In late buying and selling, shares of the media firm and sportsbook operator are greater by greater than six p.c. That’s on quantity that’s greater than quadruple the day by day common, all following a report that rival DraftKings (NASDAQ:DKNG) is in search of offers and will have Rating Media in its sights.
Among the names rumored extra just lately to be on DraftKings’ radar are media corporations, together with TheScore and John Skipper and Dan Le Batard’s nascent Meadowlark Media enterprise; small sports activities properties, together with the X Video games; and the poker firm Run It As soon as,” studies Insider.
To make certain, DraftKings dealmaking is within the rumor section in the meanwhile. Nevertheless, Macquarie analyst Chad Beynon stated in a notice to purchasers earlier at the moment that he expects the corporate will tackle merger and acquisition alternatives at its investor day on March 9.
A request for remark from Rating Media wasn’t returned previous to the publication of this text.
Rating Makes Sense for DraftKings
The corporate behind theScore Wager cellular app makes for a sensible goal for DraftKings as a result of the Boston-based firm has lengthy been rumored to be all in favour of bringing a pure-play media outfit into its fold.
Moreover, the Canadian firm would seemingly be reasonably priced for DraftKings. Following a current preliminary public providing (IPO) during which it raised $186.3 million and graduated to a Nasdaq itemizing, Toronto-based Rating Media has a market capitalization of $1.17 billion. DraftKings is valued at $22.64 billion.
Not but a 12 months faraway from its personal IPO, DraftKings has a pristine steadiness sheet. Nevertheless, it’s not but worthwhile.
As of the tip of 2020, the sportsbook operator has $1.8 billion in money and no debt. Moreover, with its inventory ascending to all-time highs at the moment, the corporate might simply use its fairness as foreign money, ought to it discover a appropriate takeover goal.
Rating Doesn’t Must Promote
Whereas acquisition rumors beforehand swirled round Rating Media, it’d be uncommon for an organization so intently faraway from an IPO and transfer to a distinguished US trade to promote itself.
Moreover, theScore is reside in Colorado, Indiana, Iowa, and New Jersey. DraftKings already has publicity there. Then there’s the current legalization of single-game sports activities betting in Canada, which is predicted to learn Rating Media greater than every other firm. That might make the corporate reluctant to promote, whereas concurrently making it a extra engaging goal for a suitor.
“TheScore would provide DraftKings a media accomplice that would assist funnel extra sports activities followers to its sportsbook and a bigger foothold in Canada,” in line with Insider.
Yet another attention-grabbing tidbit: DraftKings rival Penn Nationwide Gaming (NASDAQ:PENN) owns 4.7 p.c of Rating Media, that means that if DraftKings makes a transfer on the Canadian operator, it might enrich one among its most direct rivals within the course of.
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