DraftKings filed this morning to sell as many as 36.8 million shares, about half of which will come from early investors including Robert Kraft, Raine Group and Shalom Meckenzie, DraftKings’s largest shareholder.
The fantasy league and sportsbook company filed with the SEC this morning to sell the shares, about evenly divided between the company, which will use the money for general purposes, and seven of its largest investors, who are cashing some of their investment out.
Shalom Meckenzie leads sellers by registering to sell $544 million worth of stock. The founder of gaming technology firm SBTech will sell 8.5 million shares, about 28% of his holdings, according to the prospectus. Meckenzie is DraftKings’s largest shareholder right now, with 8.6% of the company. After the sale is completed, he will still own more than 5% of the company, worth more than $1.4 billion based on Friday’s closing price of $63.78.
Patriots owner Robert Kraft is selling some of his holdings. He has registered to sell about 11% of his stock, or 285,704 shares. He is believed to have invested in DraftKings in 2015. John S. Salter and Raine Group are selling about a quarter of their holdings, or 5.4 million shares worth $345 million. Raine Group was an early investment advisor to DraftKings and also participated in early venture capital rounds. Other selling stockholders include Atlas Ventures, Acme, J. Gleek Properties and Revolution. No one is selling out of their positions completely.
Among notable non-sellers: Walt Disney Corp, which owns 5.2% of DraftKings from its 2019 acquisition of 21st Century Fox, which was an early VC investor along with Kraft and Raine. Meckenzie is the only non-institutional board member selling shares.
DraftKings has been one of the hottest stocks in the market, with shares that gained 76% in the third quarter. It is the fourth-best performer on the JohnWallStreet Sports Index, Sportico’s index of the 40-most influential sports-related stocks.