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Tilman Fertitta Is Straight Gangster

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GrubHub was once the world's leading online and mobile food ordering company, currently partnering with over 80,000 restaurants in 1,600 U.S. cities. Despite competition from the likes of Uber, DoorDash, Postmates, Square and Amazon, GrubHub once controlled 50% of the U.S. food delivery market according to research firm Second Measure. During that time some years ago, GrubHub’s valuation got out of hand because of the potential disruption it was causing in the food delivery service.

So what did Landcadia Holdings do, which was founded by the billionaire Tilman Fertitta's for the sole purpose of acquiring companies in the dining, hospitality, entertainment and gaming industries in the U.S. Landcadia Holdings Inc. acquired Waitr Inc. for $308 million. Waitr does that same thing Grubhub does, but focuses their efforts in underserved Markets.

Waitr became a wholly owned subsidiary of Landcadia, which immediately change its name to Waitr Holdings Inc. and will continued trading on the Nasdaq stock exchange. But now Waitr had access to a portfolio of over 600 restaurants as a delivery partner, four million loyalty members across those 600 restaurants and Golden Nugget Casinos and the opportunity for partner with the Houston Rockets and its more than nine million Facebook followers.

In late 2018, Tillman Fertitta, offered $13 per share to buy rival casino operator Caesars. Tillman would serve as CEO and chairman of the combined entity, which would become the world's largest gaming and hospitality company. But eight months later, Tillman would lose out Eldorado Resorts who bought Caesars in a $17.3 billion deal.

LANDCADIA HOLDI/SH CL A (NASDAQ: LCA) announced Monday that it is acquiring Golden Nugget Online Gaming, Inc. in a move to take Golden Nuggett’s online gaming business public.

When GNOG goes public, it will offer investors a rare pure play on online gambling.

"GNOG is one of the best positioned companies to capitalize on this massive online gaming opportunity in the U.S.," said Rich Handler, co-chairman of Landcadia II and CEO of Jefferies.

The Golden Nugget has already established a position as an online gaming market leader in New Jersey and plans to expand into Pennsylvania and Michigan in early 2021.

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We saw a similar move earlier this year when Penn National Gaming finalized its purchase of Barstool Sports valuing the company at a whopping $450 million. The regional casino operator bought an immediate 36% stake in Barstool for $163 million in cash and stock, according to the Wall Street Journal. Three years later, the company will pay an additional $62 million to increase its stake to 50%. So why would Penn National Gaming buy Barstool? Well, Penn National, owns various casinos and hotels around the US and thinks Barstool’s brand could bring traffic to its casinos and its not yet online betting app.

Why are these type of moves big, because we see brick and mortar struggling in the face of COVID-19, while e-commerce businesses are thriving. These type of moves are big because COVID-19 is forcing the change in behavior and how we shop and live resulting in purchases online becoming a part of our everyday life. With no sports and minimal casinos open, it's setting the stage for online gambling to thrive in the future.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

Posted Using LeoFinance