DraftKings Inc (NASDAQ:DKNG) shares are rising in extended trading on Tuesday after the company announced an acquisition to support its entry into prediction markets.
What To Know: DraftKings will acquire Railbird Technologies and its wholly owned subsidiary, Railbird Exchange, a federally licensed exchange designated by the Commodity Futures Trading Commission.
The acquisition is expected to expand the company’s total addressable opportunity through regulated event contracts. DraftKings plans to launch a mobile app to allow customers to trade event contracts called DraftKings Predictions. The app will facilitate the trading of contracts on real-world outcomes across finance, culture and entertainment.
“We are excited about the additional opportunity that prediction markets could represent for our business,” said Jason Robins, co-founder and CEO of DraftKings.
“We believe that Railbird’s team and platform — combined with DraftKings’ scale, trusted brand, and proven expertise in mobile-first products — positions us to win in this incremental space.”
DraftKings Predictions is expected to launch as a mobile app in the coming months. The company said it may expand its offering into additional categories over time.
DKNG Price Action: DraftKings shares were up 5.23% in after-hours, trading at $35.38 at the time of publication on Tuesday, according to Benzinga Pro.
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