Published on: November 14, 2024, 08:41h.
Last updated on: November 14, 2024, 08:42h.
Harry Sloan, a co-founder of the special purpose acquisition company involved in taking DraftKings (NASDAQ: DKNG) public, recently sold 250,000 shares of the popular gaming company.
The transaction took place on Tuesday, as reported in a Form 4 submitted to the Securities and Exchange Commission (SEC) on Thursday. Following the sale, Sloan now holds 316,322 shares of DraftKings, according to the regulatory filing.
The filing does not specify the exact price at which Sloan sold the shares. However, based on DraftKings’ closing price of $41.71 on November 12, the 250,000 shares were valued at $10.42 million at that time. Additionally, Sloan was granted 352 restricted stock units on November 7.
Previously serving as Chairman and CEO of Metro-Goldwyn-Mayer, Sloan played a pivotal role in Diamond Eagle Acquisition Corp., the SPAC that facilitated DraftKings’ reverse merger to become publicly traded in 2020. He currently serves as the vice chairman of DraftKings’ board.
Sloan’s History of Buying and Selling DraftKings Stock
Sloan has not only sold shares of DraftKings but has also been involved in purchasing the company’s equity in the past.
According to a June Form 144 filing with the SEC, Sloan sold 250,000 shares of DraftKings in June, generating $9.53 million in proceeds. Additionally, he disposed of 43,000 granted shares in early March and 254,354 shares in mid-February, as reported in regulatory filings.
At one point, Sloan owned 1.1 million shares of DraftKings, indicating a significant reduction in his stake throughout the year.
Investors in DraftKings have observed several instances of insider selling, particularly by co-founders Matthew Kalish, Paul Liberman, and Jason Robins. While insiders typically sell shares, the company announced a $1 billion share repurchase program earlier this year.
Sloan’s Role in the Gaming SPAC Sector
Sloan has a notable presence in the SPAC sector, having co-founded multiple SPACs over the years with partners such as Jeff Sagansky and Eli Baker, raising over $5 billion in aggregate gross proceeds.
DraftKings notes, “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.”
In addition to his involvement with DraftKings, Sloan and his partners established Flying Eagle Acquisition Corp., a SPAC that completed a reverse merger with Skillz (NYSE: SKLZ), a mobile gaming and esports provider, in 2020. While DraftKings has performed well post-SPAC, Skillz has faced challenges, with its stock declining 18.11% year-to-date.