MGT buys DraftDay.com
Can’t say I saw this coming.
HARRISON, N.Y., April 1, 2014 /PRNewswire/ — MGT Capital Investments, Inc. (NYSE MKT: MGT) announced today that it has entered into an asset purchase agreement with CardRunners Gaming, Inc. to acquire the DraftDay fantasy sport business and software platform. MGT will pay $600,000 in cash and approximately 100,000 shares of common stock to acquire the DraftDay assets. The transaction is expected to close within one week.
DraftDay operates one of the industry’s largest and most respected daily fantasy sports wagering sites, ranking fourth highest among competitors in the most recent Alexa reports. DraftDay is also a leader in the popular quick-pick style of skill-based fantasy sports gaming. Andrew Wiggins, co-founder of DraftDay stated, “We have worked tirelessly to build an outstanding product and loyal player base. With MGT’s support, DraftDay will have greater resources to grow this business to new heights. Our employees look forward to making MGT the market leader in daily fantasy sports.”
Robert Ladd, Chief Executive Officer of MGT, summarized today’s news, “This acquisition represents a unique financially compelling opportunity and tremendous complement to our online gaming businesses. DraftDay will elevate our fantasy sports segment to an entirely new level. We are very pleased to welcome the players and employees of DraftDay.”
Added Robert Traversa, MGT’s Chief Financial Officer, “Combined with the recently initiated joint venture with Vegas Insider, we expect that the acquisition of DraftDay will be accretive to our operating results, with MGT Sports projected to become cash flow positive by yearend.”