The IPO of DraftKings Incorporated becomes a billionaire overnight

Following a reverse merger last month between American online sports betting pioneer DraftKings Incorporated and iGaming technology provider SBTech Malta Limited, the founder of the latter company purportedly became an overnight billionaire.

Shalom Meckenzie, an Israeli entrepreneur who founded SBTech Malta Limited in 2007, received some 34.6 million shares as part of the recent merger, which also included a Friday public float, according to a Forbes.com story published on Monday. The newly amalgamated firm concluded its first day of trading on the NASDAQ exchange with its shares being individually valued at $29.23, thus this 11% ownership is reportedly now worth slightly over $1 billion.

Particularly notable

According to Forbes.com, Meckenzie, 43, served as a director of SBTech Malta Limited from May 2013 to May 2014 and contributed to the development of the business into one of the top suppliers of online casino and sports betting platforms in the sector. The company, which has its headquarters in the Valletta suburb of Is-Swatar, reportedly now employs 1,200 people across 10 offices in ten different countries, and a rising number of horseracing organizations, state lotteries, and iGaming start-ups are using its technology.

Added legitimacy:

According to reports, the latest merger, which also included the special purpose acquisitions company Diamond Eagle Acquisition Corporation, granted Meckenzie, 43, one of the board's 13 seats. Along with the rich founder of The Raine Group merchant bank, John Salter, he is reportedly joined on this governing board by the co-founders of DraftKings Incorporated, Matthew Kalish, Jason Robins, and Paul Lieberman.

Bonus supporters

According to further reports, Salter received 8% of the shares in the newly expanded DraftKings Incorporated, and as a result of Friday's float, his net worth increased by almost $730 million. With a 6% stake obtained through its 2019 acquisition of Twenty-First Century Fox's international television and film assets, The Walt Disney Company is reportedly the third-largest shareholder. Even renowned hedge fund tycoon George Soros owns about 2.7 million shares through his Quantum Partners vehicle.

The Kraft family, who owns the New England Patriots team in the National Football League (NFL), is now regarded to be one of the company's biggest investors. The Kraft family's 3.5 million shares are currently estimated to be worth roughly $100 million. The Madison Square Garden Company, which owns the New York Knicks team in the National Basketball Association (NBA), is said to have a $43 million holding in the organization. Venture capital company Falcon Edge Capital is said to have a 1.27% ownership position.