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Business Combinations (Tables) | 6 Months Ended
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Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract] |
Summary of Consideration Transferred at Closing | The following is a summary of the consideration issued on the Closing Date:
Share consideration (1) | $ | 460,128 |
Other consideration (2) | 143,337 |
Total consideration | $ | 603,465 |
(1)Includes the issuance of approximately 29.3 million shares of New DraftKings’ Class A common stock issued at a price of $15.73. (2)Includes (i) payments made by the Company on behalf of GNOG, including repayment of the outstanding portion of GNOG’s term loan (including the associated prepayment premium) and payment of certain of GNOG’s transaction expenses incurred in connection with the GNOG Transaction and (ii) warrants that were exercisable for shares of GNOG Class A common stock prior to the Closing Date, which were assumed by New DraftKings in connection with the GNOG Transaction and became eligible to be converted into approximately 2.1 million shares of New DraftKings Class A common stock in the aggregate. These payments were partially offset by commercial credits received by the Company from Fertitta Entertainment, Inc. (“FEI”), which can be applied by the Company from time to time to offset future amounts otherwise owed by it to FEI or its affiliates under commercial arrangements among such parties, subject to certain limited exceptions, which partially offsets the other consideration issued in connection with the GNOG Transaction.
Summary of Acquisition Purchase Price | The following table summarizes the consideration issued or paid in connection with the GNOG Transaction and the preliminary fair value of the assets acquired and liabilities assumed in connection with the consummation of the GNOG Transaction on the Closing Date. The values set forth below are preliminary, pending finalization of valuation analyses:
Cash and cash equivalents | $ | 66,709 |
Cash reserved for users | 7,633 |
Receivables reserved for users | 2,814 |
Accounts receivables | 9,005 |
Prepaid expenses and other current assets | 541 |
Property and equipment, net | 2,674 |
Intangible assets, net | 307,000 |
Operating lease right-of-use assets | 1,185 |
Deposits and other non-current assets | 47,395 |
Total identifiable assets acquired | 444,956 |
Liabilities assumed: |
Accounts payable and accrued expenses | 36,660 |
Liabilities to users | 5,260 |
Operating lease liabilities | 1,185 |
Other long-term liabilities | 76,750 |
Total liabilities assumed | 119,855 |
Net assets acquired (a) | 325,101 |
Purchase consideration (b) | 603,465 |
Goodwill (b) – (a) | $ | 278,364 |
Summary of Intangible Assets Acquired |
| Fair Value |  | Weighted- Average Useful Life
Gaming licenses | $ | 137,000 |  |  | 12.2 years
Customer relationships | 170,000 |  |  | 5.9 years
Total | $ | 307,000 |  |  |  |  |
Business Acquisition, Pro Forma Information | The financial information in the table below summarizes the combined results of operations of Old DraftKings and GNOG, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the GNOG Transaction had been consummated as of the beginning of the periods presented or of results that may occur in the future.
| Three months ended June 30, |  | Six months ended June 30,
| 2022 Pro Forma |  | 2021 Pro Forma |  | 2022 Pro Forma |  | 2021 Pro Forma
Revenue | $ | 478,416 |  |  | $ | 327,482 |  |  | $ | 927,525 |  |  | $ | 664,671 |
Net loss | (210,769) |  |  | (318,087) |  |  | (686,543) |  |  | (735,256) |

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- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(3) -URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of finite-lived intangible assets acquired as part of a business combination or through an asset purchase, by major class and in total, including the value of the asset acquired, any significant residual value (the expected value of the asset at the end of its useful life) and the weighted-average amortization period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4845-128472 + Details
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