DraftKings recently raised about $70M from investors, a "sharp drop from the company’s previous investment rounds as it fights regulatory battles across the country," according to sources cited by Curt Woodward of the BOSTON GLOBE. A source said that investors "did not assign a fixed valuation to the company in this funding round, which happened in the past few months." Sources said that the new investment round prompted Fox "to cut the value" of its $160M investment in DraftKings by about 60%. It was "not clear if Fox was among the investors" in the new $70M round. Fox "isn’t the only investor that has reassessed its stake in DraftKings in recent months." Mutual funds owned by John Hancock Financial and Hartford Financial Services Group Inc. recently reported that they "cut the value of their stakes in DraftKings’ August financing round" by about 15%, from $7.67 per share to about $6.52 per share (BOSTON GLOBE, 2/13).
DUE DATE: In Cleveland, Kevin Kleps noted while daily fantasy companies "have asked TV networks to delay payments" for their partnerships, the Browns and Cavaliers said that there "have been no problems in receiving funds" from FanDuel. Cavaliers Senior VP & CRO Brad Sims said, "They have been great partners and have paid in full and on time." The Browns' FanDuel Fantasy Lounge "debuted at FirstEnergy Stadium last fall." The Cavaliers’ deal with FanDuel, which is "believed to be in the seven-figure range," began in January '15, but the partnership "was significantly larger this season" (CRAINSCLEVELAND.com, 2/14).
