A potential acquisition of DraftKings by investment company Diamond Eagle Acquisition Corp. could "help Draftkings go public or merge with another firm," according to Andy Rosen of the BOSTON GLOBE. Two anonymous DraftKings employees confirmed the "takeover talks" with Diamond Eagle, first reported by Bloomberg. The sources "stressed that a deal is not certain" as potential suit interest is common and "discussions could continue for weeks before a decision is reached." Diamond Eagle investors Harry Sloan and Jeff Sagansky have "long been interested" in the sports gambling industry, as they "reportedly considered buying FanDuel last year, before the Paddy Power transaction." Since its founding in '11, DraftKings has been privately funded with close to $1B from investors in sports, financial and entertainment industries as it "spent big on acquiring customers" and "fought legislative and regulatory battles" to maintain product legality. A '16 merger with FanDuel "fell through a year later" when the FTC worried the partnership would "stifle competition in the daily fantasy industry." Since then, "both companies have moved into sports betting" (BOSTON GLOBE, 11/1).
