Published on: November 5, 2025, 09:14h.
Updated on: November 5, 2025, 09:14h.
- Stock sale may be linked to the recently disclosed Railbird acquisition.
- Regulatory filing reveals DraftKings sold “over $100 million” in equity.
According to a recent regulatory disclosure, DraftKings (NASDAQ: DKNG) has reportedly offloaded more than $100 million in shares.
A Form D Notice of Exempt Offering of Securities submitted to the Securities and Exchange Commission (SEC) indicates that the Boston-based gaming firm divested at least $100 million in shares on October 21. This coincided with the announcement of the acquisition of Railbird Technologies, the parent organization for prediction markets entity Railbird Exchange.
According to the SEC, “Form D serves as a filing for a notice regarding an exempt offering of securities. The federal securities laws stipulate that companies issuing securities without registration under the Securities Act of 1933 must file this notice for offerings made under Rule 504 or 506 of Regulation D or Section 4(a)(5) of the Securities Act.”
The financial specifics of this transaction were not disclosed, and DraftKings did not directly assert in the SEC filing that the stock sale was related to the Railbird acquisition. Post-acquisition announcements revealed that DraftKings could be paying as much as $250 million for the prediction markets company.
This acquisition positions the gaming giant to launch DraftKings Predictions in the upcoming months. It is reported that DraftKings was the sole bidder for Railbird.
Aligning Share Sale with Previous DraftKings Transactions
While not officially confirmed, it is likely that the sale of shares is intended to financially support the Railbird acquisition. There’s also speculation that the upfront payment may have been around $50 million.
This aligns with DraftKings’ previous transaction structures, where stock was utilized for part of the payment, supplemented with a small upfront cash payment and earn-outs contingent on achieving specific financial milestones.
Last year, DraftKings engaged in approximately $1 billion worth of acquisitions, comprising a rumored $70 million for Sports IQ Analytics, around $170 million (potentially) for Simplebet, and a notable $750 million for Jackpocket, an internet lottery provider. Though the company has been relatively quiet on the acquisition front this year, the Railbird acquisition was regarded as crucial for addressing investor concerns about the company’s activity amidst the growing volume in event contract exchanges related to sports derivatives.
Addressing Investor Concerns
While the share sale aims to finance a potentially rewarding and necessary acquisition, it simultaneously poses dilution risks for existing DraftKings investors. Some shareholders may consider the timing unfortunate, as the stock has declined by 38.27% over the last 90 days, closing at $27.92 on Wednesday, marking its first drop below $28 in two years.
This gaming firm is set to provide its earnings report on Thursday after the US markets close, with analysts projecting a loss of 41 cents per share based on generally accepted accounting principles (GAAP) and anticipated revenue of $1.20 billion.