DraftKings reportedly in sale talks with Diamond Eagle Acquisition

US fantasy sports and gambling operator DraftKings is reportedly in advanced talks with special-purpose acquisition company (SPAC) Diamond Eagle Acquisition over a potential sale, according to Bloomberg.

The report, which cites ‘people familiar with the matter,’ states that the acquisition company is exclusively in negotiations with DraftKings. With this being said, the report goes on to point out that a deal is yet to be signed and that it could still potentially fall through. 

It is also reported that DraftKings may consider raising capital in another funding round if the sale falls through with a spokesperson stating: “DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to comment on the specifics of any of those discussions.”

The news of the reported sale negotiations comes in the same week that DraftKings finds itself in pole position to be awarded licences for retail and mobile sports betting in New Hampshire after the operator scored the highest in the state’s licence tender.

Moreover, DraftKings also recently became the National Football League’s first official Daily Fantasy Sports partner, with Chief Executive Officer Jason Robins stating at the time: “This is a defining moment in the industry, and we are thrilled to become the first daily fantasy sports partner to enter into a formal relationship with the NFL.

“Throughout our discussions with the League, it was evident we share a common vision around the future of fan engagement, and we are excited to continue on this unique journey with the NFL as our Official Daily Fantasy Partner.”

The SPAC is led by former Sony Corporation and CBS executive Jeff Sagansky and raised $400m through an initial public offering back in May.

Diamond Eagle is yet to provide any comment regarding the reports.