Jordan takes a gamble on sports betting firm
● Basketball legend Michael Jordan is to take an undisclosed equity stake in DraftKing, the fantasy sports and gambling company, and join its board as a special adviser.
Shares of the company rose nearly 6% to $39.07 (R647.80) in morning trading after the announcement on Wednesday.
Jordan, a six-time National Basketball Association (NBA) champion who led the Chicago Bulls’ dynasty in the 1990s, is a Basketball Hall of Famer who owns the basketball team Charlotte Hornets.
His career was thrust into the spotlight after Netflix’s docuseries The Last Dance, which was released in April and garnered a large television audience.
In May, an autographed and well-worn pair of his Nike Air Jordan sneakers fetched a record $560,000 at an auction.
The series delves into Jordan’s love of gambling on card games, in casinos and the golf course, and the controversy it created at the time the Bulls were in the running for an NBA championship.
Jordan has agreed to take an equity interest in DraftKings and will provide strategic and creative advice on areas including product development and marketing, the sports betting company said.
DraftKings was taken public earlier this year by an entity founded by Hollywood executives Jeff Sagansky and Harry Sloan in a deal that valued the company at $3.3bn.
The announcement on Wednesday added nearly $800m to the company’s market capitalisation, which stood at $13.1bn, as of last close, according to Refinitiv data.
There has been longterm optimism in the growing market for US sports gambling, even as the Covid-19 pandemic has led to broadcast networks and sports leagues either postponing or rescheduling games and seasons. — Reuters
There has been long-term optimism in the growing market for US sports gambling