![]() This is based on 68 million shares outstanding after the merger, based on the investor slide presentation. Moreover, there will be more shares outstanding after the merger, so the pro forma market capitalization will be higher.įor example, LCA stock has a pro forma market capitalization right now of about $1.04 billion at $15.29 per share (using the Aug. We have to revalue the company now that LCA stock has risen over 50% to over $15 per share. However, that valuation assumes the original LCA IPO price of $10 per share. The deal is valued at a pro forma enterprise value of approximately $745 million, or 6.1 times estimated 2021 revenue of Golden Online, which comes in at $122 million. In its slide presentation, Golden Nugget Online said the addressable market opportunity is $20 billion annually. It has applied for online gaming approval in Pennsylvania and Michigan as well. Right now Golden Nugget Online is operating only in New Jersey. So GNOG is much more profitable than DKNG even on an operating basis. The company made net income of over $11 million in 2019.īy contrast, DraftKings had higher revenue of $70.9 million in the last quarter, but lost $161.4 million on an operating basis. GNOG launched in 2013 and became profitable in 2016. That operating income was up 74% year-over-year. The GNOG earnings report showed that the company made record earnings of $24.8 million in net revenue and $8.5 million in operating income. After all, its owners and managers will still be the dominant shareholders of the merged company, once it merges with LCA stock and effectively goes public. This was done even though it is still a private company and has not yet merged with Landcadia Holdings. Golden Nugget Online Gaming just revealed its second-quarter earnings on Aug. Right now a date has not been set, but the merger is likely to occur sometime in September or October. That is also when a good number of investors may take a position in the merged company. When Landcadia merges with Golden Nugget Online Gaming, the new symbol will be GNOG. That is when the stock symbol changed to DKNG. That stock originally started out as a special purpose acquisition company (SPAC). But once its reverse merger closed, the newly named stock essentially doubled from the period when it was announced. This is based on what happened with a similar stock, DraftKings (NASDAQ: DKNG). ![]()
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