Michael Jordan is taking an equity interest in DraftKings in exchange for “providing guidance and strategic advice” to the company’s board of directors. He will also join the e-sports and gambling company as a special adviser.
Michael Jordan joins DraftKings board
The NBA Hall of Famer and chairman of the Charlotte Hornets will serve as a special adviser to the board of directors. He’ll give insight on company “strategy, product development, inclusion, equity and belonging, marketing activities and other key initiatives,” per a news release.
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” said Jason Robins, DraftKings co-founder and CEO, in a statement. “The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”
DraftKings shares jump with Jordan news
DraftKings shares jumped 13 percent in premarket trading to $41.86, per CNBC, after the Jordan addition was announced.
The betting company experienced a larger loss than what was expected in the second quarter of the year while sports were shut down due to COVID-19. In a statement last month, Robins said DraftKings worked to engage new fans in NASCAR, golf, UFC and European soccer while the United States’ major sports were on hiatus.
It went pubic in April after stockholder approval and a blank-check deal with Diamond Eagle Acquisition Corp. DraftKings was valued at $6.3 billion after its first day of trading, per MarketWatch.
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