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Business Combinations (Tables) | 3 Months Ended
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Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract] |
Summary of Consideration Transferred at Closing | The following is a summary of the consideration issued on the GNOG 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 DraftKings Inc.’s Class A common stock issued at a price of $15.73. (2)Includes (i) $170.9 million of 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 GNOG Closing Date, which were assumed by DraftKings in connection with the GNOG Transaction and became eligible to be converted into approximately 2.1 million shares of DraftKings Inc.’s 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.
Summary of Acquisition Purchase Price | The following table summarizes the consideration issued or paid in connection with the GNOG Transaction and the fair value of the assets acquired and liabilities assumed in connection with the consummation of the GNOG Transaction on the GNOG Closing Date:
Cash and cash equivalents | $ | 66,709 |
Cash reserved for users | 7,633 |
Receivables reserved for users | 2,814 |
Accounts receivables | 7,783 |
Prepaid expenses and other current assets | 64 |
Property and equipment, net | 1,433 |
Intangible assets, net | 315,000 |
Operating lease right-of-use assets | 1,185 |
Deposits and other non-current assets | 47,395 |
Total identifiable assets acquired | 450,016 |
Liabilities assumed: |
Accounts payable and accrued expenses | 32,989 |
Liabilities to users | 4,314 |
Operating lease liabilities | 1,185 |
Other long-term liabilities | 78,781 |
Total liabilities assumed | 117,269 |
Net assets acquired (a) | $ | 332,747 |
Purchase consideration (b) | $ | 603,465 |
Goodwill (b) – (a) | $ | 270,718 |
Summary of Intangible Assets Acquired |
| Fair Value |  | Weighted- Average Useful Life
Gaming licenses | $ | 145,000 |  |  | 12.2 years
Customer relationships | 170,000 |  |  | 5.9 years
Total | $ | 315,000 |  |  |  |  |
Summary of Pro Forma Information | The financial information in the table below summarizes the combined results of operations of Old DraftKings and GNOG, on an actual and a pro forma basis, as applicable, as though the companies had been combined as of January 1, 2021. 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 March 31,
|  | 2023 Actual |  | 2022 Pro Forma
Revenue |  | $ | 769,652 |  |  | $ | 449,109 |
Net loss |  | $ | (397,148) |  |  | $ | (475,774) |

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