DraftKings SPAC Boss Dumps 250K Shares

Harry Sloan, one of the founders of the blank-check company that brought DraftKings (NASDAQ: DKNG) public, sold 250K shares of the gaming company.

That sale occurred on Tuesday, according to a Form 4 filed with the Securities and Exchange Commission (SEC) late Thursday. Following that divestment, Sloan owns 316,322 shares of the online sportsbook operator, according to the regulatory document.

Formerly Chairman and CEO of entertainment giant Metro-Goldwyn-Mayer, Sloan was involved with Diamond Eagle Acquisition Corp., the blank-check company DraftKings executed a reverse merger with to become a publicly traded firm in 2020. He’s currently vice chairman of the gaming company’s board.

Not the First Time Sloan’s Been a DraftKings Seller

In fairness to Sloan, there have been occasions on which he’s been a buyer of DraftKings equity, but there are also other examples of him being a seller.

On that date, Sloan owned 1.1 million shares of DraftKings, indicating he’s pared that stake dramatically this year.

As DraftKings investors know, that’s not necessarily surprising as the stock has experienced a wave of insider selling — one often led by co-founders Matthew Kalish, Paul Liberman, and Jason Robins. That trio and other insiders rarely buy the shares, but the operator did unveil a $1 billion share repurchase plan earlier this year.

Sloan Known in Gaming SPAC Circles

Sloan has long been active in the special purpose acquisition company (SPAC) space.

Since 2011, Mr. Sloan has co-founded seven special purpose acquisition companies with his partners, including Jeff Sagansky and Eli Baker, raising aggregate gross proceeds of over $5 billion,” according to DraftKings.

In addition to DraftKings, Sloan and his partners also founded Flying Eagle Acquisition Corp., the blank-check company that executed a reverse merger with mobile gaming and esports provider Skillz (NYSE: SKLZ) in 2020, paving the way for that company to go public.

While DraftKings has been one of the better-performing de-SPAC-ed stocks in recent memory, the opposite is true of Skillz. That stock has been a value destroyer over the past several years and is down 18.11% year to date.