DraftKings Investor: Company’s value has dropped by 60%

DraftKings valuation plummeting

Media conglomerate Fox, an investor in DraftKings, says the company’s value has dropped by 60%.

In a filing on Tuesday Fox disclosed that it was reducing the value of its $160 million investment in DraftKings by $95 million.

Fox says recent transactions involving DraftKings, convinced the company that “a portion of its investment in DraftKings was impaired.”

The company, which has faced regulatory hurdles in New York and other states, recently lost its exclusive ESPN deal with Disney. The exclusive deal was first announced in June.

DraftKings and FanDuel each raised $300 million last summer, led by a group of media companies and an assist from the NBA and MLB.

Each company received a valuation over $1 billion at the time of initial investments.

FanDuel and DraftKings quickly started spending money in an attempt to flood the airwaves with fantasy sports ads.

Fox’s filing also disclosed that DraftKings last summer had committed to spend a minimum of $250 million on ads on Fox networks through the end of 2017.

A scandal in which a DraftKings employee won $350,000 playing a game on FanDuel led to closer regulatory scrutiny. Backlash caused the sites to change their policies to prohibit their employees from playing any fantasy games for money.