DraftKings stock jumped 12% this morning after the company added Michael Jordan to its board of directors.
Jordan will act as a “special advisor” to DraftKings in return for an equity stake in the business.
DraftKings shares climbed 12% to $41 in pre-market trading. The move is equivalent to around $3.5 billion in added market cap.
The size of the stake was not disclosed, but the absence of regulatory filings suggests it is less than 5%
Jordan is also the majority owner of the NBA’s Charlotte Hornets.
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” said Jason Robins, DraftKings CEO, in a press release.
“The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”
What will Jordan bring to DraftKings?
As a special advisor, Jordan will provide input on
- Company strategy
- Product development
- Inclusion, equity and belonging
- Marketing activities
- Other key initiatives
The former Chicago Bulls star joins a number of high-profile DraftKings investors. Disney has a 6% stake in the business. And Bloomberg reported that George Soros, Jerry Jones and Robert Kraft are also among DraftKings’ shareholders.
The latest share price rally means DraftKings is up more than $10 from its recent results day when it reported Q2 revenues of $71 million and losses of $161 million.
And $DKNG is the latest sports betting stock to surge this week, joining PointsBet and Penn National which are both up double-digit percentages over the last seven days.