- Time Warner Investments, NBA and NFL Owners Also Join Round
- Founded in 2009, FanDuel has raised $363 million in capital
Daily fantasy sports company FanDuel Inc. raised $275 million in Series E financing, led by KKR & Co. and including Google Capital, Time Warner Investments and Turner Sports.
Several National Football League and National Basketball Association team owners also participated in the round, bringing FanDuel’s capital raised to $363 million, the New York-based company said in a news release. The NBA itself already was an investor.
FanDuel, the leading daily fantasy company in 2014, will use the cash to draw more users and introduce new products. Together with rival DraftKings Inc., the two companies together probably spent more than $80 million in advertising last year, according to Eilers Research LLC.
“We are thrilled to support FanDuel’s next phase of growth given the company’s leading position in the daily fantasy market, model operating principles, highly efficient customer acquisition capabilities, and visionary management team,” Ted Oberwager, a KKR principal, said in a statement.
Former FanDuel investors such as Shamrock Capital, NBC Sports Ventures, Comcast Ventures, Bullpen Capital, Pentech Ventures and Piton Capital also participated in the latest round.
Based on reported revenue, FanDuel held 63 percent of the daily fantasy market in 2014, while No. 2 DraftKings Inc. had 33 percent, according to Eilers Research. With much of FanDuel’s revenue coming from September to January during the NFL season, DraftKings might be much closer to a market-leading position based on 2015 revenue. FanDuel has deals with several NFL and NBA teams. Major League Baseball is an investor in DraftKings, which also has an endorsement deal with the National Hockey League.
DraftKings expects to add Fox Sports and others as investors as early as Tuesday, largely replacing $200 million lost when Walt Disney Co. decided not to become an investor last month, according to the New York Times. Disney’s ESPN instead hired DraftKings to be its exclusive daily fantasy partner.