Thread by @puppyeh1

So Draftkings is coming public via a SPAC - the deal values the combined DK + SBTech (gaming tech software provider) at ~4x FY20E revs...

Couple of interesting takeaways for shareholders...

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1) SBTech is being valued at ~4.7x FY20E revs and 4.4x FY21E revs for <30% growth next yr and 7% growth in 21E...with likely aggressive growth assumptions. trades - on my numbers - at 2.6x FY21E EV/revs (w/ no credit for other states beyond NJ, PA)

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2) Deck makes it clear economics for software/platform providers at scale are very juicy - they allocate 12% of gross revs for 'platform' costs and 5% for 'revenue share', either or both of these numbers could be considered 's potential take rate for sports betting:

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3) DK is FanDuel's no 1 competitor and is a) creating a huge acquisition currency to grow and b) suggesting vertical integration is clearly a long-term advantage. Suggests strong pressure to put on FanDuel to do the same, near-term (to 's) benefit

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4) stock is trading +7%, suggesting pure play sports betting names are in demand. will fit the bill shortly (once it relists) - probably b4 the DK deal is approved (1H '20).

Overall - strong ++ readacross from DK deal for

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