Rush Street in talks over potential sale with DraftKings

Finance News

Rush Street Interactive shares jumped last week after Bloomberg reported the company is exploring a potential sale. Sources indicated that the list of potential buyers that have been approached included DraftKings.

Neither Rush Street (RSI) or DraftKings (DKNG) has issued a specific comment on the report.

Rush Street (RSI) has seen its online sports betting revenue rise as more sports legalized sports betting, but has struggled to hold its market share and faces ongoing promotional pressure from larger competitors. Earlier in the month, Rush Street Interactive (RSI) reported Q4 revenue increased 17% in Q4 to $193.9M.

Adjusted EBIDTA was $11.5M for the quarter to turn around the loss from a year ago. The online gaming and sports entertainment company showed a net loss of $5.46M vs. a net loss of $28.27M a year ago. Looking ahead, Rush Street (RSI) sees FY25 revenue of $770M to $830M.