Charlotte Hornets proprietor Michael Jordan responds to a query throughout a 2014 information convention at Time Warner Cable Area in Charlotte, N.
Charlotte Hornets proprietor Michael Jordan responds to a query throughout a 2014 information convention at Time Warner Cable Area in Charlotte, N.C.
Jeff Siner | Charlotte Observer | Tribune Information Service by way of Getty Pictures
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Shares of DraftKings jumped 13% in premarket buying and selling after the corporate mentioned Michael Jordan is becoming a member of the betting firm as a particular advisor to the board of administrators.
Jordan, a member of the Nationwide Basketball Affiliation Corridor of Fame, can have an fairness curiosity within the firm as a part of the deal. He’s the present chairman and proprietor of the Charlotte Hornets franchise.
“Michael Jordan is among the many most necessary figures in sports activities and tradition, who perpetually redefined the trendy athlete and entrepreneur,” DraftKings CEO Jason Robins mentioned in a press launch. “The strategic counsel and enterprise acumen Michael brings to our board is invaluable, and I’m excited to have him be part of our staff.”
Jordan is predicted to supply DraftKings his experience on sports activities firm technique, product improvement, range, fairness and belonging, advertising actions and different key initiatives, in accordance with the discharge.
The help from the six-time NBA Finals MVP and Chicago Bulls icon will probably come as welcome addition to the DraftKings staff, which is navigating some near-term revenue strain.
The Covid-19 pandemic continues to disrupt scores {of professional} and faculty sports activities leagues as efforts to comprise the coronavirus drive athletes and followers dwelling.
However regardless of the Covid-19 complications, buyers stay largely constructive on DraftKings’s longer-term outlook and have despatched its inventory hovering greater than 240% to date this 12 months to $36.93 by Tuesday’s shut.
Its skill to dealer a cope with the likes of Jordan is probably probably the most placing instance but of the thrill surrounding the sports activities playing world and the wealth now tied to the nascent trade.
A latest addition to the general public markets, DraftKings in April mixed with Diamond Eagle Acquisition Corp., a particular objective acquisition firm, and gaming know-how supplier SBTech. The transfer allowed it to bypass the standard preliminary public providing course of.
On the time it went public and closed its merger with Diamond Eagle on April 24, DraftKings was value about $780 million. It is now value north of $13 billion, in accordance with FactSet estimates.