Boston-based DraftKings officially acquired DraftStreet on Monday in a move that combines the forces of the second and third (respectively) largest daily fantasy sports startups. The companies are planning to announce the deal on Tuesday morning.
As a result, DraftKings’ customer base will be bumped up by almost 50 percent, the company’s CEO Jason Robins told USA Today Sports, which broke the news on Monday afternoon.
Financial terms of the deal were not disclosed.
In order to ease the transition of avid fantasy sports players, DraftStreet users will be able to seamlessly transfer their accounts or either cash out or move their winnings over to DraftKings’ platform – with 100 percent transfer bonus to ease the pain.
As a result of the deal, DraftKings will be incorporating a few of the more popular elements of DraftStreet’s games into its suite of offerings.
Another added benefit: By DraftKings and DraftStreet teaming up, the former will be able to offer even larger prize pools. Take, for example, DraftKings’ Guaranteed Fantasy Baseball Championship this August. The startup will host the largest every daily fantasy league in history, with $3.3 million in the pot.
As mentioned in the BostInno Beat on Monday, DraftKings is in the process of raising a big round of funding. Said round is now rumored to be up upwards of $35 million, with a valuation well north of $100 million.
The two year-old startup raised $24 million in November 2013 in an over-subscribed Series B round led by Redpoint Ventures, and included GGV Capital, Atlas Venture and BDS Ventures. In total, DraftKings has raised $35 million.
