Liberman Paul 4

What Happened

• Paul Liberman, President, Operations of DraftKings (DKNG), exercised stock options and immediately sold the resulting shares on March 11, 2026. He exercised 484,417 options (430,547 + 53,870) at $0.63 per share (aggregate exercise cost $305,183) and sold those same 484,417 shares in open-market transactions for total gross proceeds of about $12,187,932 (weighted average price $25.16).
• The net effect is a liquidation of shares (exercise followed by sale). The reported sales were made pursuant to a pre-arranged Rule 10b5-1 trading plan.

Key Details

• Transaction date: March 11, 2026.
• Options exercised: 484,417 shares total at $0.63 each (total paid ≈ $305,183). Transaction code: M (exercise/conversion of derivative).
• Shares sold: 484,417 shares total in open market at a weighted avg price of $25.16; gross proceeds ≈ $12,187,932. Transaction code: S (sale).
• Price ranges: the sales occurred in multiple trades. Reported ranges were $24.65–$25.57 and $24.66–$25.57; 25.16 is the weighted average.
• Footnotes: F1 – exercise paid in cash (including tax withholding); F2 – sales under a 10b5-1 plan adopted Mar 6, 2025; F5 – options were granted Mar 24, 2016 and had vested.
• Shares owned after the transactions are not specified in this excerpt of the Form 4.
• Filing timeliness: Form filed 2026-03-12 for transactions on 2026-03-11 (no late filing indicated).

Context

• This was effectively a cashless exercise: options were exercised and the acquired shares were sold the same day under a pre-arranged plan, resulting in immediate liquidity. Gross proceeds minus exercise cost is roughly $11.88M pre-tax and before fees/withholdings.
• Codes: M = option exercise, S = sale. This type of transaction is common when insiders exercise long-held options and use a 10b5-1 plan to sell.