Exclusive: Struggling DraftKings awards $30 million marketing contract to cofounder who recently stepped down
Six weeks before leaving his post, Matthew Kalish signed agreements with his startup HardScope potentially worth millions.
DraftKings, a struggling betting site, has signed a $30 million marketing contract with a media platform owned by one of its cofounders, Matthew Kalish. The agreement, disclosed in a regulatory filing, allows Kalish's company, HardScope, to broker deals with podcast hosts and other figures to promote DraftKings. Kalish, who recently stepped down as president after 14 years with the company, initiated the new marketing company in December.
The deal comes after DraftKings saw its share price drop by 44% in the past year due to pressure from prediction markets, significant layoffs, and rising competition. Kalish's move has raised concerns about corporate oversight and governance, as the board structure grants significant power to its CEO, Paul Robins, who controls roughly 88% of the voting power despite owning only around 2% of the company.
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