DraftKings shares surge 13% after Michael Jordan joins betting company as board advisor
PUBLISHED WED, SEP 2 20208:07 AM EDT
UPDATED 11 MIN AGO
Thomas Franck @TOMWFRANCK
CNBC.com
Charlotte Hornets owner Michael Jordan responds to a question during a 2014 news conference at Time Warner Cable Arena in Charlotte, N.C.
Jeff Siner | Charlotte Observer | Tribune News Service via Getty Images
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Shares of DraftKings jumped 13% in premarket trading after the company said Michael Jordan is joining the betting company as a special advisor to the board of directors.
Jordan, a member of the National Basketball Association Hall of Fame, will have an equity interest in the company as part of the deal.
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” DraftKings CEO Jason Robins said 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.”
Jordan is expected to offer DraftKings his expertise on sports company strategy, product development, diversity, equity and belonging, marketing activities and other key initiatives, according to the release.
The assist from the six-time NBA Finals MVP and Chicago Bulls icon will likely come as welcome addition to the DraftKings team, which reported last month a wider-than-expected loss for its fiscal second quarter despite strong revenues.
The near-term pressure came as the Covid-19 pandemic continues to disrupt scores of professional and college sports leagues as efforts to contain the coronavirus force athletes and fans home.
But even despite the Covid-19 headaches, investors remain largely positive on DraftKings’s long-term outlook and have sent its stock soaring more than 240% so far this year to $36.93 by Tuesday’s close.
But Robins remained upbeat, telling investors that the company remained focused on developing new and innovative offerings. DraftKings is actively working to attract fans to its new fantasy sports and betting products for NASCAR, golf, UFC, and European soccer, it said last month.
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