Another $100 million in financing for DraftKings
DraftKings Inc., already the highest-funded startup in Massachusetts, has raised another $100 million in a round led by Eldridge Industries LLC — a firm led by part-owner of the Los Angeles Dodgers Todd Boehly.
The funding was first reported by Bloomberg, which reported the size of the round based on “people familiar with the matter.”
DraftKings confirmed with the Business Journal the investment by Eldridge Industries, but declined to share the size of the deal or the company’s valuation.
“As DraftKings continues to grow and pioneer new ways for sports fans around the world to engage with the teams and players they love, we were looking for a funding partner who could bring additional depth to the table,” DraftKings CEO Jason Robins said in the statement. “The exceptional team at Eldridge does that through their incredible knowledge and success with media properties, providing a deep bench of experts to help fuel DraftKings’ continuing growth as a sports entertainment company.”
The daily fantasy sports site has previously raised more than $650 million in venture investment, including more than $200 million in 2016 alone. Previous investors include Revolution Growth, The Kraft Group, Redpoint Ventures and Cambridge-based Accomplice.
This is the first investment since the company announced it would pursue a merger with New York-competitor FanDuel Inc.
Eldridge Industries owns a number of media properties, including TV production company Dick Clark Productions and the magazines Billboard and The Hollywood Reporter. During an interview broadcast via Facebook Live at a startup conference in February, Robins spoke about DraftKings’ vision for expanding its sports media offerings.
“Our vision is that if you want to watch anything, you’re going to be able to,” Robins said. “So if that’s out there and that’s possible to see, we want to be able to as seamlessly as possible deliver that for our customers….Whether it’s us actually streaming or producing it and actually ourselves funding all the production and then piping it in, or it’s someone else doing it and we’re just deeply integrated in a way where it’s easy for them to watch it, it’s not as important.”
DraftKings employs about 350 people, approximately 250 of which are in Boston. When DraftKings and FanDuel announced their merger in November, they said the new company would be co-headquartered in Boston and New York. The deal is awaiting regulatory approval.
Robins will be CEO of the combined firm and has said he is committed to the Boston area.