DraftKings surges 12% after Michael Jordan takes equity stake and special adviser role

• DraftKings surged as much as 12% on Wednesday after basketball legend Michael Jordan took an equity interest in the firm.
• Jordan's stake comes in exchange for "providing guidance and strategic advice" to the sports betting company, according to a press release.
• The six-time NBA champion will advise DraftKings on a variety of topics including company strategy, development, diversity, equity, and marketing.
• Watch DraftKings trade live here.

DraftKings shares rocketed as much as 12% on Wednesday after announcing basketball superstar Michael Jordan took an equity stake in the company.

The six-time National Basketball Association champion took an equity interest in exchange for "providing guidance and strategic advice" to DraftKings' board of directors, according to a Wednesday press release. The sports betting company plans to tap Jordan for input on company strategy, development, diversity, equity, and marketing activities.

"The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team," CEO and co-founder Jason Robins said in the release.

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Jordan's role as a special advisor to DraftKing's board of directors is effective immediately, the company said.

DraftKings began trading publicly in April after merging with special-purpose acquisition company Diamond Eagle. Shares have since rallied as investors position for sports gambling to pick up as major leagues resume activity.

The exposure to major sports in the middle of the coronavirus pandemic cuts both ways. While the start of the NBA and Major League Baseball seasons boosted shares, the stock tumbled as much as 13% on July 27 when a COVID outbreak halted several MLB games.

DraftKings closed at $36.93 per share on Tuesday, up 247% year-to-date.

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