v3.26.1
Business Combinations (Tables)
 6 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Summary of Consideration Transferred at Closing The following is a summary of the consideration issued or paid on the Railbird Acquisition Date:
Cash consideration$18,296 
Equity consideration (1)
28,708 
Contingent consideration (2)
37,785 
Total consideration$84,789 

(1)Includes the issuance of approximately 0.9 million shares of DraftKings Inc.’s Class A common stock issued at $33.62 per share.
(2)The Company recorded a fair value estimate of the contingent consideration, as disclosed in “Note 6 – Fair Value Measurements”. Contingent payments have a maximum value of up to $200 million, 47.5% of which will be contingent consideration and 52.5% of which will be recorded as compensation under ASC 805, Business Combinations. The payments will be settled, at the Company’s option, in shares of the Company’s Class A common stock or in a combination of shares of the Company’s Class A common stock and cash; provided that, for each Railbird equityholder that is an accredited investor, shares of the Company’s Class A common stock will represent at least 70% of the contingent consideration such equityholder receives. The Company’s Class A common stock to be issued as contingent payment will be valued on the basis of a 30-day volume-weighted average price of the Company’s Class A common stock determined at or around the issuance thereof based on certain post-closing performance metrics.
Summary of Acquisition Purchase Price
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed in connection with the consummation of the Railbird Transaction on the Railbird Acquisition Date. The values set forth below are preliminary, pending finalization of valuation analyses:
Assets acquired:
Cash and cash equivalents$181 
Restricted cash1,734 
Intangible assets58,090 
Deposits and other non-current assets6 
Total identifiable assets acquired60,011 
Liabilities assumed:
Accounts payable and accrued expenses52 
Other long-term liabilities15,365 
Total liabilities assumed15,417 
Net assets acquired (a)44,594 
Purchase consideration (b)$84,789 
Goodwill (b) – (a)$40,195