[Fertitta selling?] Golden Nugget Online sold to Draftkings

Elaborate for me like I'm 5
for the board.

 

A lot of people don’t understand the brilliance of this move. Draftkings didn’t have traditional online games. This gives DK the opportunity to be the top US online betting market, stopping overseas online casinos dead in their tracks. A lot of the plan to legalize sports gambling in the US was to eliminate China from piggybacking off the US market. As DK grows, it is still very young, that 1.6 billion slowly becomes 3.2 billion and Tilman can divest at his leisure.

A $10 SPAC doubled in value in under a year. Anybody criticizing this move doesn’t understand the maths.

 

I see him to be a nerd who does not care about nba basketball.

 

restate or rewrite for me as if I’m 7 as I don’t unnerstan what you say???

 

Is it desperate? He didn't liquidate for cash, he liquidated for stock holdings in DraftKings. Doesn't that imply that he agrees with your premise that online sports betting is on the rise?

 

As said in the other thread, what timing

 

yep, lulz. Only Rockets fans would think this is a desperate or bad merger

it was probably his plan all along to not go it alone, but to position GNOG to make a strategic partnership.

 

Not at all

 

1.56 billion shares is nice and a seat on the board is a pretty solid deal on Tilman parts.

draftkings is one the largest if not the largest online sports betting around in America.

assuming sports betting is legal over the next year or 2 those shares that are at 50 bucks today might double if that does happen and Tilman said he plans on hanging onto them for atleast a year which means maybe he knows more then we do as all billionaires seem to.

forbes estimates his net worth to be 4.7 billion as of April this year with this he’s pushed it over 6.2 billion potentially 8 billion in a year or two.

 

Big money move for tilman.

 

April is old news. And he didn’t own 100% of GNOG, so you’ll need to temper that valuation increase. Plus his valuation in April would have included GNOG, so wouldn’t be a straight addition, like you did

however...

Tilman had already gained another $2B in valuation to start July
He renegotiated his February SPAC deal to add more assets to it and increase his % stock ownership, and Wall Street reacted very favorably ... setting his % ownership in his public company — FST — at $6.7B or thereabouts.

no one on cfnet posted that news though, which was bigger than this

He’s probably north of $8b in public valuation right now ... and that doesn’t include the Rockets

 

I think he owns 53% of GNOG

Could be wrong

I’m with you I think his net worth is closer to 8-9 billion before u include the rockets.

u know a lot more than I do about his financials. I just don’t get Tilman is broke stuff from a lot of ppl around here.

he’s not Dan Gilbert type money or some of those other owners but he’s also worth more than mark cuban who I think a lot of ppl think is a decent owner.

 

He would have zero interest. The investment is too small with no return and he doesn't have the time. You need an older investor with billions that is ready to park their money in an asset and sit on it.

 

btw: does this news tie-in with Tate getting an early gaurantee!

 

I think the concern was his D/E ratio. When he lost out on that big casino deal in 2019 that was a chance for him to maximize his leverage at a cheap cost using economies of scale. After the lockdowns he needed capital at a much higher cost to float. When you are that big it is about cashflow and having ROI outpace debt service and operating costs.

 

yeppers, and it appears this and another deal has re-cash positioned TF.

 

Exactly. To put it in layman's terms, you can buy an $800K House and $200K car and say your worth $1M. But if your loans are $950K your 'net worth' is $50K. That's why "net" worth is a thing.

High leverage is dangerous and insolvency (lack of cash to cover debt) is why companies (and people) worth a lot can still fail.

As far as I can tell this is one of the more positive Tilman deals I've seen. So there's that!

 

So do I buy Draft king stocks or GOLDEN NUGGET ONLINE GAMING STOCKS? That is the question...?