DraftKings Shares Soar As Michael Jordan Takes Equity Stake

DraftKings shares are soaring 12% in premarket trading on the news that basketball legend Michael Jordan - an owner of the Charlotte Hornets - has taken an equity stake.

Jordan is joining the betting company as a special advisor to the board of directors. As a part of the deal, he will receive an equity interest in the sports-betting app.

"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."

In his advisory role, Jordan is expected to offer DraftKings advice on strategy, product development and - most importantly - "diversity, equity and belonging", according to a statement from the company.

Read the full press release below:

BOSTON, Sept. 02, 2020 (GLOBE NEWSWIRE) -- Today, DraftKings (Nasdaq: DKNG) welcomed Michael Jordan as a special advisor to the company’s board of directors. The NBA Hall of Fame inductee, six-time NBA Finals MVP and Chairman of Hornets Sports & Entertainment has agreed to take an equity interest in DraftKings in exchange for providing guidance and strategic advice to the board of directors on key business initiatives undertaken by the sports technology and entertainment company that went public earlier this year.

“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. “The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team."As a special advisor, Jordan will provide strategic and creative input to the board of directors on company strategy, product development, inclusion, equity and belonging, marketing activities and other key initiatives.

Jordan’s status as special advisor to DraftKings’ board of directors is effective immediately. Further information about DraftKings is available at draftkings.com/about and the latest company updates can be found on Twitter at @DraftKingsNews.