Business Combinations (Tables)

6 Months Ended

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)