DraftKings Raises $300M In New Round Of Funding Led By Fox Sports
The battle between DraftKings and heir larger rival FanDuel in the daily fantasy sport betting has been well documented by our staff. What makes this rivalry so much more fascinating is the fact that they are following almost identical paths in their quest to dominate this sector. Only a few weeks after FanDuel raised $275 million in Series E Funding, DraftKings have matched them by raising $300 million in a new funding led by Fox Sports.
Fox Sports will now hold about 11 percent equity in DraftKings with the new round o investment. This latest round of funding bring the amount raised by DraftKings to about $426 million to date.
Fox President Eric Shanks commented on the deal,“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. 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.”
CEO of DraftKings could not be happier as their company has closed the gap on their rival FanDuel. He said,” 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.”
Robins went on to say that the additional funding will be used to focus on strengthening their brand from the competitors with emphasis on social media features as well as expanding to the regions like Europe and Asia. The United Kingdom is set to be the first market for DraftKings to attack.
DraftKings will spend over $250 million on Fox networks in the next few years. Unlike the deal with ESPN, Draftkings is not exclusive on Fox Sports so their rivals FanDuel will certainly join them advertising on Fox as well.
CEO Robins went on to say,” We were going to spend a lot of money with Fox, anyway, where a lot of live sports content is. Fox has heavy coverage sports that we offer competitions in — M.M.A., Nascar, soccer and golf. We don’t just consider taking their money and spending it.”