DraftKings Execs Sell $10m+ of Stock
Paul Liberman and Jason Robins, co-founders of DraftKings, have been selling off stock in the past week, with more than $10 million worth sold by the duo.
Paul Liberman and Jason Robins Sell $10m+ of DraftKings Stock
More than $10 million worth of DraftKings stock has been sold by two of the company’s top executives over the past few days.
Paul Liberman and Jason Robins, who are co-founders at the online betting giant, have been cashing in some of their chips.
It has been revealed by a Form 144 filing with the Securities and Exchange Commission that Robins raised close to $7 million on August 21 after selling 20,000 shares in the business.
Furthermore, Robins’ co-founder Liberman, who is the president and global director of product for DraftKings, made gross proceeds of $3.23 million by selling stock according to a separate regulatory filing.
Reports indicate both of these transactions were exercises of stock options, but eyebrows have been raised by two key figures in the company selling $10m+ worth of shares in rapid fashion.
Robins has been busy this month: it is not the first time in August he has sold DraftKings stock.
Another filing with the Securities and Exchange Commission shows he brought in gross proceeds of $6.14 million on August 8, which follows the $8.78 million he made in May.
What Is Happening at DraftKings?
Questions are being asked by DraftKings customers and industry insiders about what Robins and Liberman cashing in stock means for the future of the business.
It is only recently that DraftKings confirmed in a statement that the repurchase of an aggregate of up to $1 billion of its Class A common stock had been approved by the board of directors.
DraftKings chief financial officer Alan Ellingson said the company is “very excited” about its free cash flow trajectory as he explained the reasoning behind the share repurchase move.
He said: “In light of that, we are pleased to announce a $1 billion inaugural share repurchase authorisation, which reflects our confidence in the company’s attractive long-term outlook and healthy balance sheet.”
DraftKings launched as a daily fantasy sports platform back in 2012 and, after a period of rapid growth, the company began trading on the Nasdaq Stock Exchange under the symbol “DKNG”.
Robins and Liberman Still Hold DraftKings Stock
Despite selling off more than $10 million worth of their shares in the company in just a few days between them, both Liberman and Robins retain significant stakes.
Indeed, those DraftKings stock sales are in accordance with automated trading plans at the firm.
Sports betting has been a huge area of growth for DraftKings in recent years. The company was the first to launch an online and mobile sportsbook in New Jersey, doing so in 2018, and it has been spreading through the country as more states make moves to legalise online betting.
But it has not all been smooth sailing for DraftKings. The company is being sued by the NFL Players Association over claims it owes $65 million from a licensing agreement for NFTs.
