Golden nugget online gaming gnog went through the stratosphere yesterday skyrocketing by 60 overnight because of a deal announcement. Yesterday we got word: the draftkings are buying golden nugget online gaming gnog, and this is massive news in this video i'll give you everything you need to know. First of all, where i think the target price is going for jnog post acquisition announcement, why this deal was made, how it's gon na be structured and what's the future of gnog looks like and if you stay all the way through the video i got a little Bonus for you, i'm gon na tell you which side won this deal, because this is a lot to talk about here that doesn't really get discussed in mainstream media because i feel they don't think you're smart enough to understand this, and i find that insulting. So i'm gon na also give you my synopsis, my breakdown on who got the better deal here: draftkings or gnog shareholders.

Okay. So initially i spoke about jnog in the video i posted on march 15th this year, and i said this stock is currently at 17, and i think it's gon na go up to 25. makes sense. Now it was just my opinion might be, niagara might be wrong.

Might be the remedies of a madman, i told you, you got to do your own research, not a financial advisor. You got to do the work yourself, allegedly blah blah blah, and you did. However, a lot of you got your pitchforks and basically tried to look for me because the stock went from 17 to 12 in the meantime, and a lot of you were marking this as a fail for tom now i explained this multiple times. For me, it's always about the long-term aspects, not specifically concerned about short-term swings, but a lot of you were angry and rightfully so, but yesterday the announcement came out and the stock shot up to nineteen dollars, basically giving you a lot of profit now here's the question Is it worth getting into the stock right now, here's another question: if you're holding, should you keep holding or should you sell out again, i can't tell you what to do, but i'll tell you what i'll do and i'll share with you my own strategy, so you Can formulate your own based on your risk management and your assessment? What the hell is going on here, so a few words about the deal before we get started.

This is a massive deal, 1.56 billion dollars. Now the dollars are not real, because it's a pure stock deal nobody's getting a single dollar. The valuation is 1.56 billion, but the deal works such as the existing shareholders of gaming, gondla and gonganger, whatever they're called nog, are getting shares in draftkings. So the golden nugget online gaming shareholders are only getting shares in draftkings, based on the pro rata, between draftkings and golden nugget online gaming valuations, so no cash whatsoever a pure stock deal.

Now. This isn't necessarily bad because it creates a lot of synergies which i'll explain in a second now we haven't heard of enough about this, but i just read a few articles. Basically, explaining how there are multiple integration deals either currently existing or in the works between gnog landry's golden nugget, the physical casinos, the whole infrastructure and ecosystem of international online gaming and sports betting being created here. So there's a lot of synergies between the online and the offline businesses that are related to gold nugget online gaming.

There's a lot to cover here. But basically, what went on here is that draftkings came up and said: hey we're going to give you a premium of 50 over what you're trading at right now. So when the deal was announced, the stock price was 12 dollars and yet draftkings agreed to pay 18 and 83 cents per share massive 51 percent upside or premium whatever. You want to call it overpayment, not really, because if you look at the actual valuation, you'll find out a lot of surprises.

And at this point, a lot of mainstream media will tell you that draftkings overpaid the fact that they agreed to give 51 above the market price means that draftkings got screwed. Not really i'll. Explain why? If you look at the revenues of golden nugget, at least the estimated revenues for next year, this is a deal that's being made on a multiple of eight, a nice multiple, but nowhere near the 12 and a half multiple draftkings is currently being traded at. So if anything draftkings are actually getting golden nugget on a discount, that's the kind of thing that mainstream media reporters just can't understand or even worse, they understand, but they think you can't.

So they don't bother even telling you the 51 premium is nice, but the reality is that draftkings are getting a bargain here, but i don't think they're screwing gnog either i'll explain why this deal is supposed to close on q1 2022, essentially the beginning of next year, And if you look at the terms of the deal you find out that this is about to be a very lengthy relationship. This isn't about an exit for tillman fertitta, the owner and the main shareholder of gnog, essentially he's getting a seat on the board of draftkings, which he wouldn't want. If he was just trying to get rid of the stock. Also, he is getting locked up for a whole year voluntarily, not selling any draftking stock.

If he didn't give a about, draftkings wouldn't be locked out plus he doesn't really need the money he's a gazillionaire. I think he owns the rockets and a bunch of other stuff. So tillman fertitta is in it for the long games. Why did he agree to actually give draftkings such a massive discount like a 30 discount? Unlike what mainstream media is telling you? Well, the reason is because they're getting a strategic corporation here, it's not about the money.

It's not about selling gnog it's about getting a massive player in the market that can really launch gnog to play ball with them on the same team. That strategic partnership is worth a lot more than this 30 discount on the multiples, and i think this is a really good segue for what i'm about to do with the stock, because this is a huge question, whether you're an existing shareholder or a potential future shareholder. You're, trying to figure out is this a good price for jnog right now, with the whole partnership and everything so here's the thing. I said that this was a 25 stock before the merger.

Now they bought them at 19 per share, essentially draftkings. Unlike what mainstream media is telling you got a massive discount now the question is: do you see this as an indicator that the price should be lower, or do you agree with tillman that this is a launch pad for the company and it's worth the discount? Let me put it another way: if you think that tillman fertility gave a discount to draftkings, because he doesn't think the stock is worth enough to justify twenty five dollar valuation, then you should get out if you think that tillman fertitta agreed to give that discount to Draftkings to basically bringing a massive strategic partner to launch the company into the stratosphere, then you stay it's quite simple, but you got to do your own research, your own homework. This is how it works. Now, in my personal opinion, which might be in the wrong, it might be, inaccurate might be the ramblings of madman.

You know that my personal opinion, i think that he's definitely in the latter category the man has gazillions of dollars. He has an nba franchise. He has so much money. Would he really need to sell this just for money unless he sees some visionary aspects of it he's definitely not getting cash.

If this was a cash deal, whole different story, but all he got is stock in draftkings with this new division inside. So i think it's an indicator that this is still a 25 stock. I wouldn't basically lower my target price because tillman fertitta sold at a lower valuation. Now here's the other aspect of it will the share price go down after the initial hype subsides.

I think it will, but i don't trade based on short-term swings. I don't care like. I don't swing trade, i don't day trade, but if you want to try and time it i mean, i guess you could it's not something i do i'm in it for three to four to five years. I honestly don't care how it's going to swing, i'm assuming it's probably going to pull back after people kind of relax and move to the next hype, but i'm staying because i think it's a 25 stock and it is what it is.

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