×
You will be redirected back to your article in seconds

Fox Sports Leads DraftKings $300 Million Funding Round

Fox Sports has nabbed a stake in daily fantasy-sports startup DraftKings, with the 21st Century Fox-owned TV programmer leading a $300 million funding round.

Fox Sports is paying about $150 million, giving it an 11% take in DraftKings, the New York Times reported. The funding comes on the heels of Fox Sports rival ESPN signing a multiyear deal with DraftKings to become ESPN’s exclusive daily fantasy-sports partner.

With the latest round, DraftKings has raised about to $426 million to date. Also participating were Major League Baseball; the National Hockey League; Major League Soccer; the Madison Square Garden Co.; Legends, a stadium concessionaire owned by the New York Yankees and Dallas Cowboys; and existing investors Atlas Venture, DST Global, GGV Capital, the Kraft Group, the Raine Group and Wellington Management Co.

“Partnering with DraftKings, a clear leader in this field, is a great opportunity for us to capitalize on the growth of daily fantasy sports for the benefit of our viewers,” Fox Sports president and COO Eric Shanks said in a statement. “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.”

Separately, FanDuel, a DraftKings competitor, announced a $275 million round of funding led by venture-capital firm KKR, with participation from Google and Time Warner and Turner Sports.

Earlier this year, Disney/ESPN had reportedly been considering an investment in DraftKings, before opting for a partnership deal with the startup.

DraftKings, which launched in 2012, said it will use the additional funding to continue building out web and mobile products, launch internationally and explore new opportunities for vertical expansion.

“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 CEO Jason Robins said.

DraftKings, based in Boston, claims it registered its 100 millionth contest entry in July and that it expects to award well over $1 billion in prizes in 2015 (up from approximately $300 million in 2014).

Whereas fantasy-sports leagues typically span an entire season, DraftKings offers single-day online games that lets users win cash and prizes across a variety of pro and collegiate sports. DraftKings is the exclusive daily sports-fantasy partner of MLB, NHL, MLS, NASCAR and Ultimate Fighting Championship.

The Raine Group was exclusive financial adviser to DraftKings on the latest financing round, while Cooley LLP served as legal adviser.

More Digital

  • Velvet Buzzsaw trailer

    Netflix Original Movies: What to Look Forward To in 2019

    Following the biggest fourth-quarter worldwide subscriber gain ever and some controversy around increased prices in the U.S., Netflix looks to keep its momentum going into 2019. From Jan. 18 through March, the streaming site will release 10 original films, including action-packed thrillers, a post-apocalyptic sci-fi, quirky comedies, inspirational dramas, an artistic horror movie and a viral [...]

  • The Beatles Eight Days a Week

    Imagine's Documentary Arm Sets First-Look Pact With Apple (EXCLUSIVE)

    Brian Grazer and Ron Howard’s Imagine Documentaries has set a first-look pact with Apple to develop non-fiction features and series. The deal comes as Imagine is investing heavily in the premium non-fiction arena. The company in June recruited RadicalMedia veteran Justin Wilkes to head Imagine Documentaries as president. The deal suggests that Apple sees docu [...]

  • Walt Disney HQ LA

    Disney Unveils Financial Data for DTC Unit, Sets April 11 for Investor Presentation

    Disney has rejiggered its business segments for earnings reporting to make room for the new unit housing its global streaming operations. Disney on Friday released restated earnings for fiscal 2018, 2017 and 2016 to give investors and financial analysts better visibility into its spending on the launch of the Disney Plus, ESPN Plus and other [...]

  • Facebook Logo

    Release of Docs to Reveal How Facebook Made Money Off Children

    Documents related to a 2012 lawsuit against Facebook in which children, sometimes unwittingly, spent their parents’ money on games via the social site will be unsealed, according to a Monday ruling from the United States District Court. The court gave Facebook ten days to file unredacted documents in accordance with the ruling. The 2012 lawsuit [...]

  • Facebook Logo

    Facebook Sets Up New Product Group for AR Glasses (Report)

    Facebook has restructured its augmented and virtual reality research division and set up a new group tasked with building augmented reality (AR) glasses, according to a new Business Insider report. Facebook acknowledged the move in a statement given to the publication, saying that the move affected “a few hundred people.” The group has already built [...]

  • nba-the-bounce-logo

    NBA, Turner to Debut Three-Hour Primetime Live Studio Show on Yahoo Sports

    Coming next week: a new NBA primetime show — delivered over the internet — covering all the live action and storylines of the evening. The NBA is teaming with Turner Sports and Yahoo to produce a live nightly show designed for mobile viewers in a three-hour block, slated to run five nights per week on [...]

More From Our Brands

Access exclusive content