DraftKings News: DKNG Stock Jumps 8% on Michael Jordan Relationship

DraftKings (NASDAQ:DKNG) news for Wednesday includes Michael Jordan joining the company and DKNG stock soaring higher.

DraftKings (DKNG) logo on a phone

Source: Lori Butcher / Shutterstock.com

Michael Jordan has joined DraftKings as a special advisor to its Board of Directors. This will have him providing guidance for “company strategy, product development, inclusion, equity and belonging, marketing activities and other key initiatives.”

DraftKings notes that Michael Jordan is acting as a special advisor to the company in exchange for an equity interest in it. However, DKNG doesn’t reveal the financial details of that interest.

Jason Robins, co-founder and CEO of DraftKings, said the following about the Michael Jordan news.

“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur. The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”

According to Oppenheimer analyst Jed Kelly, the decision to bring Michael Jordan on as a special advisor is a good one. While the analyst notes that he doesn’t know what type of financial impact it will have on DKNG, it’s still a positive association for the company’s brand image.

DraftKings wanting Michael Jordan’s help for its brand makes sense. He’s a six-time NBA Finals MVP and a member of the NBA Hall of Fame. Adding to this is the fact that he’s the chairman of Hornets Sports & Entertainment, which owns the Charlotte Hornets.

DKNG stock was up 7.8% as of Wednesday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/09/draftkings-michael-jordan-news-boosts-dkng-stock/.

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