Michael Jordan Takes Equity Stake in DraftKings, Stock Jumps Higher

DraftKings stock rose as much as nearly 12% on Wednesday after company announced the NBA hall of famer’s role

Last Updated: September 3, 2020 @ 6:21 AM

DraftKings stock jumped as much as 11.8% on Wednesday after the company announced that NBA legend and gambling aficionado, Michael Jordan, would join the popular sports betting platform as a special advisor to the board of directors and get an equity stake in DraftKings in the process.

The amount of Jordan’s equity stake was not disclosed.

“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” DraftKings co-founder and CEO Jason Robins said in a statement. “The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”

As a special advisor, DraftKings said that Jordan will provide strategic and creative input to the board of directors on company strategy, product development, inclusion, equity and belonging, marketing activities and other key initiatives.

Jordan’s status as special advisor to DraftKings’ board of directors is effective immediately. DraftKing’s stock opened trading 11% higher on Wednesday from the previous day’s close and had gone as high as $41.29 as of the writing of this article.

DraftKings went public in April after closing its business combination with sports gambling-tech company SBTech and Diamond Eagle Acquisition Corp. Last December DraftKings had agreed to a merger with former Hollywood executives Harry Sloan and Jeff Sagansky’s blank-check company Diamond Eagle Acquisition SBTech. The tie-up was expected to give the new company a market value of $3.3 billion.

In merging with Diamond Eagle, DraftKings was spared many of the hurdles typically required to go public or sell new shares.

The company’s stock has gained roughly 19% in the last month as virtually all sports leagues have found a way to get back up and running. DraftKing shares are down nearly 4% in the last three months.