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DraftKings Falls as Lockup for Secondary Offering Expires

DraftKings falls after the lockup from the online sports betting platform’s secondary offering in June ends.
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DraftKings  (DKNG) - Get DraftKings Inc Class A Report fell Tuesday after the lockup from the online sports betting platform’s secondary offering in June ended.

A 1.7 million-share block was dumped on the market in premarket trading, Bloomberg reported. The block was priced at $42.15 share, 5% beneath Monday’s close of $44.58. That gave the block a $71.7 million value. The trade accounts for 0.6% of DraftKings’ total shares available for trading, according to Bloomberg. DraftKings has about 380 million shares outstanding.

DraftKings shares traded Tuesday at $43.07, down 3.39%, and have dropped 33% since Oct. 2. But the stock still has soared 122% from its reverse merger in April.

Shares were hit by announcements two weeks ago from the company and early investors such as New England Patriots owner Robert Kraft that they would sell shares, Bloomberg reported.

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Last week, DraftKings signed its latest media deal, a partnership with Warner Media’s Turner Sports division. Terms weren't disclosed.

The multiyear deal will see DraftKings provide sports-betting information and daily fantasy content across Turner Sports telecasts and Bleacher Report's digital channels as well as the B/R app.

“Regulated betting is quickly becoming a fixture of modern sports entertainment, and this collaboration with Turner Sports further scales the reach of our products and content to engage fans,” Ezra Kucharz, chief business officer at DraftKings, said in a statement.

The deal excludes National Basketball Association programming.

The agreement includes integrations that will feature custom content segments, DraftKings' betting odds and daily fantasy statistics, original content, personalized automated alerts and editorial across the Turner Sports network.