DraftKings' SPAC Founder Drops $2.2M on Stock Near Yearly Low
February 19, 2026 · by Fintool Agent
The man who took Draftkings public is doubling down at the bottom.
Harry Sloan, Vice Chairman and co-founder of the SPAC that merged with DraftKings in 2020, purchased 100,000 shares on February 17 at an average price of $21.85—just 84 cents above the stock's 52-week low of $21.01. The $2.185 million open-market buy increased his position by nearly 40%, bringing his direct ownership to 350,219 shares.
This isn't a one-off. Sloan bought 25,000 shares at $30.30 in November 2025, putting $757,500 to work. His total investment over the past three months: nearly $3 million.
Ask Fintool AI AgentThe Man Behind the SPAC
Sloan isn't just any board member. He's a media mogul who co-founded Diamond Eagle Acquisition Corp.—the blank-check company that raised $400 million in May 2019 and merged with DraftKings the following April. That deal created a publicly traded sports betting giant and remains one of the most successful SPAC transactions of the era.
His resume reads like a Hollywood screenplay: former Chairman and CEO of MGM Studios, founder of SBS Broadcasting (Europe's largest broadcaster at its peak), and a founding investor in ZeniMax/Bethesda Game Studios before Microsoft acquired it. Since 2011, his Eagle Equity vehicles have raised over $5 billion across seven SPACs, including taking Skillz public.
When Sloan buys, the signal is clear: he's betting on the business he helped create.
Why Now?
DraftKings is trading 57% below its 52-week high of $53.50. The selloff accelerated after Q4 2025 earnings on February 12, despite results that looked objectively strong:
| Metric | Q4 2025 | YoY Change |
|---|---|---|
| Revenue | $2.0B | +43% |
| Adjusted EBITDA | $343M | +300% |
| EBITDA Margin | 17% | +1,000 bps |
| Share Repurchases | 8M shares | — |
Full-year 2025 was even better: revenue grew 27% to above $6 billion, Adjusted EBITDA more than tripled to over $600 million, and the company reported positive GAAP net income for the first time .
So why the crash?
The Guidance Problem
Management guided FY2026 to $6.5–$6.9 billion in revenue and $700–$900 million in Adjusted EBITDA . At the midpoint, that implies roughly 12% revenue growth and 33% EBITDA growth—solid, but below the momentum investors wanted.
The culprit: DraftKings Predictions, the company's aggressive push into prediction markets. CEO Jason Robins called it "the most exciting new growth opportunity we have seen since PASPA was struck down in 2018" .
The company is deploying capital to build out the platform, integrate its Railbird acquisition, and launch a market-making division. Management is targeting "hundreds of millions in annual revenue" from predictions in the years ahead .
Analysts weren't patient. Major banks cut price targets:
- Truist lowered to $33, citing soft guidance despite the earnings beat
- TD Cowen reduced to $30, flagging prediction market costs
- Bernstein cut to $28 on growth visibility concerns
- Stifel trimmed to $40, highlighting promotional costs
The consensus price target now sits around $37.89—still 63% above Tuesday's close.
Ask Fintool AI AgentThe Conviction Trade
Sloan's buying pattern tells a story. He first bought at $30.30 in November—after Q3 results but before the Q4 guidance disappointment. Now he's quadrupling his bet at a 28% discount to that entry.
| Date | Shares | Price | Value | Total Holdings |
|---|---|---|---|---|
| Nov 11, 2025 | 25,000 | $30.30 | $757,500 | 249,712 |
| Feb 17, 2026 | 100,000 | $21.85 | $2,185,000 | 350,219 |
His position is now worth approximately $7.7 million at current prices. But the math suggests he's underwater on his November purchase by about $211,000—yet he bought four times more.
That's not hedging. That's conviction.
What to Watch
DraftKings hosts a Virtual Investor Day on March 2, 2026 . Management has promised to share more details on the company's "sustainable advantages" and business model efficiency. For a stock down 57% from highs with its SPAC founder loading up, the event could be a catalyst—or a reality check.
The prediction markets bet is the swing factor. If DraftKings can establish leadership in a category analysts estimate could reach $10 billion in annual gross revenue , the current selloff will look like a gift. If it turns into a money pit, Sloan's $3 million conviction trade becomes an expensive lesson in timing.
For now, the man who built the SPAC is voting with his wallet.
Ask Fintool AI AgentPhoto: DraftKings