DraftKings stock has jumped 12 percent after the sports betting operator added Michael Jordan to its board of directors for a key role.
The former American basketball player will act as a “special advisor” to the company in return for an equity stake in the business.
Following the announcement, DraftKings stock soared 12 percent to $41 in pre-market trading. The development is equivalent to roughly $3.5 billion in added market cap.
Though the proportion of the stake was not revealed, the absence of regulatory filings hints it is less than 5 percent.
Jordan also holds a majority stake of the NBA’s Charlotte Hornets.
While speaking on Jordan’s inclusion in its fold, DraftKings CEO Jason Robins said, “Michael Jordan is one of the most important sports figures, who forever redefined the modern athlete and entrepreneur.”
Robins further said that the strategic counsel and business acumen that MJ brings to the board is invaluable. “I’m excited to have him join our team.”
What will Jordan bring to DraftKings?
As a special advisor to DraftKings, Jordan will offer his counsel on:
- Product development
- Company strategy
- Marketing activities
- Inclusion, equity, and belonging
- Other key initiatives
The former player joins many other high-profile DraftKings investors, including Disney, with a six percent stake in the business.
According to the Bloomberg report, Jerry Jones, George Soros, and Robert Kraft are among the leading DraftKings’ shareholders.
The most recent price rally suggests DraftKings is up more than $10 from its results day that witnessed Q2 revenues of $71 million and losses of around $161 million.
And DraftKings is the most recent sports betting stock rise this week, joining Penn National and PointsBet. Both witnessed up double-digit percentage over the last week.