DraftKings Closes New Funding Spherical, Reportedly In Extra Of USD100 Million

Daily fantasy sportsbook web site DraftKings confirmed that it closed a brand new funding spherical, reportedly elevating greater than USD100 million, in keeping with Bloomberg Information.

The DraftKings spherical, at a look

The information — and the quantity of the spherical, was damaged by Bloomberg:

DraftKings rapidly confirmed the report, providing this assertion from CEO Jason Robins:

“We have now closed a Collection E1 spherical of funding led by Eldridge Industries.  As DraftKings continues to develop and pioneer new methods for sportsbook followers world wide to interact with the groups and gamers they love, we had been in search of a funding accomplice who may carry extra depth to the desk.

The distinctive staff at Eldridge does that by their unimaginable information and success with media properties, offering a deep bench of consultants to assist gasoline DraftKings’ persevering with development as a sportsbook leisure firm.”

Extra concerning the funding agency

Right here’s how Eldridge Industries describes itself:

Eldridge Industries owns, operates and invests in companies throughout industries together with finance, media and actual property.  Headquartered in Greenwich, CT, with places of work in New York, London and Beverly Hills.

Its chairman and CEO Todd Boehly, who’s an proprietor of the Los Angeles Dodgers. He’s had an possession stake within the Dodgers since 2012.

Main League Baseball was an early backer of DFS, and owns fairness in DraftKings. DraftKings has sponsorship offers with nearly each MLB staff, together with the Dodgers.

What concerning the DraftKings-FanDuel merger?

What’s this imply for the merger with FanDuel? The deal between the 2 largest DFS operators is nearly definitely nonetheless on.

Nevertheless, the truth is that merger received’t undergo till Q3 of this 12 months — per estimates from the 2 firms — which continues to be months away. If it drags into the later months of the third quarter, that generates numerous uncertainty for the 2 companies.

There’s at the very least a risk the merger received’t undergo due to federal anti-trust considerations.

LSR is conscious that FanDuel has additionally been attempting to lift in current months.

Numerous funding in DraftKings

It’s the most recent in a collection of reported investments totaling greater than USD800 million within the DFS web site because it went dwell in 2012.

That is the second straight spherical led by a gaggle with ties to an proprietor in a US sportsbook franchise.

The newest recognized inflow of cash for DraftKings was USD150 million from Revolution Progress in September of 2016. Revolution was co-founded by Ted Leonsis, the bulk proprietor within the Washington Wizards of the NBA and the Washington Capitals of the NHL.

DraftKings famously raised USD300 million earlier than the 2015 NFL season.

DraftKings was as soon as valued at USD2 billion, however after the more moderen funding, at the very least one analyst estimated that it had dropped nearer to USD1 billion.