In a deal that was made public recently, billionaire philanthropist George Soros, 89, has $68 million worth of shares in DraftKings. The deal was conducted through Quantum Partners, which is owned by Soros Fund Management.
Soros owns 2.7 million shares of DraftKings, according to a new filing with the Securities Exchange Commission (SEC). Soros or his representatives have declined to comment on the stock purchase.
The Soros Fund Management is in charge of the financial portfolio for the entire Soros family. DraftKings has been gaining investors far beyond the sports world.
DraftKings was founded in 2012 by three childhood friends, Jason Robins, Paul Liberman and Matt Kalish, in Boston. Several high profile figures in the sports world invested in the company in the very early stages.
Some of those early investors were Dallas Cowboys owner Jerry Jones and New England Patriots owner Robert Kraft. Soros Fund Management oversees an estimated $25 billion in investments.
Soros Made ‘Conservative Investment’ In DraftKings
The person who was in charge of buying DraftKings stocks for Soros is its Chief Investment Officer, Dawn Fitzpatrick. The Soros family made what it calls a conservative investment with DraftKings, and they also have been active during the coronavirus pandemic.
Recent reporting by Bloomberg indicates that the Soros family has also invested in Peloton Interactive, Inc. The company produces upscale stationary bikes.
An insider for Soros said, “He always has a magic touch when it comes to buying stocks. He knows what to buy and when to buy it.” Soros has 2.8 million shares in the company, and in just the last six weeks, the company stock has sourced by 58%, making the value of the Soros stock to $117 million.
DraftKings has been going through some explosive growth since the Boston company went public in April. The DraftKings stocks are up by 40% since going public.
DraftKings did what is known as a “reverse merger” in the business world. The merger was facilitated with Mousse Partners, the company that does transactions for the Wertheimer family that owns fashion powerhouse Chanel. The Wertheimers also own $88 million of DraftKings stock.
Kraft Owns More DraftKings Stock Than Cowboys Do
According to the filing with SEC, Kraft, 78, and his two sons, Jonathan and Daniel Kraft, own 3.35 million shares of DraftKings stock. While their rivals, Legends Hospitality, who handle financial transactions for Jones, owns 194,867 of DraftKings stock shares.
New York Yankees owner Harold Steinbrenner also owns a substantial amount of DraftKings stock. Another new development with DraftKings stocks indicates that several professional basketball teams have bought stock in DraftKings.
James Dolan, the owner of the New York Knicks, has also been buying DraftKings stock. Madison Square Garden Entertainment Corp. is controlled by Dolan, and the company facilitated the stock buy.
According to the filing at the SEC, Dolan owns 1.5 million shares of DraftKings shares. Boston Celtic co-owner Stephen Pagliuca now owns 566,000 shares of DraftKings shares.
Kraft, who is also a well-known philanthropist and donates millions of dollars a year to various charities, is hard at work for relief efforts for the coronavirus. Kraft put one of his Super Bowl rings on the auction block.
The proceeds from the sale of Kraft’s ring will go to “All In Challenge,” which is the largest online fundraiser that is raising funds for feeding those that are food insufficient due to the coronavirus.