DraftKings entices Fox in $300m funding round

DraftKings entices Fox in $300m funding round

Friday, July 31, 2015 Totally Gaming
DraftKings is estimated to be now worth around $1.3bn

DraftKings has trumped its daily fantasy sports (DFS) rival FanDuel by announcing additional funding of $300m (€273.2m).

The Series D round of investment was led by television network Fox Sports, and also including major sports organisations Major League Baseball, the National Hockey League, Major League Soccer and The Madison Square Garden Company and Legends.

The announcement came just days after FanDuel said it had raised $275m of funding through the likes of Google Capital and Time Warner/Turner Sports.

“To receive this type of support from such an outstanding group of organizations, including three major sports leagues, is an incredible milestone for us and reaffirms our leadership position in daily fantasy sports,” DraftKings chief executive Jason Robins said.

Fox Sports is the major contributor, with the New York Times newspaper saying that it is paying about $150m for an 11 per cent share in DraftKings, which would value the company at $1.36bn. The investment comes just weeks after Disney/ESPN chose not to invest in the Boston-based company, although DraftKings did become its exclusive daily fantasy sports partner.

Eric Shanks, president and chief operating officer of Fox Sports, added: “Partnering with DraftKings, a clear leader in this field, is a great opportunity for us to capitalise on the growth of daily fantasy sports for the benefit of our viewers. We’ll work with DraftKings to develop ideas and create content to drive deeper engagement with sports fans across multiple platforms, including our national, local, and digital properties.”

Existing investors Atlas Venture, DST Global, GGV Capital, The Kraft Group, The Raine Group and Wellington Management Company LLP also took part in the funding round, with DraftKings now raising a total of $426m in investment.

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