DraftKings Invests in Vivid Seats SPAC as Boehly Cuts Stake
(Bloomberg) -- DraftKings Inc. agreed to make an undisclosed investment in Horizon Acquisition Corp., a blank-check company expected to begin trading as Vivid Seats Inc. next week.
DraftKings is taking over some of the commitment made by Eldridge Industries LLC, founded by Los Angeles Dodgers co-owner Todd Boehly, according to a statement Thursday.
The investment gives DraftKings, one of the fast-growing sports-gambling companies, the potential for marketing tie-ins with a big seller of tickets to sports events, concerts and theaters. Boehly’s company is also an investor in DraftKings.
Horizon expects to complete its merger with Vivid Seats and begin trading under the Vivid name on Oct. 19. Shareholders of the companies are voting on the deal Thursday.
As part of the deal, DraftKings has an option to sell its Vivid Seats stock back to Eldridge for $9.77 a share a year after the merger is completed.
Horizon rose as much as 14% to $11.78 a share in New York. DraftKings advanced as much as 3% to $51.29 in New York. The stock had gained 7% this year through Wednesday’s close.
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