Tuesday, November 22, 2022
HomeCasinoDraftKings Shares Spike as Potential ESPN Deal Emerges

DraftKings Shares Spike as Potential ESPN Deal Emerges

Disney’s CEO has lengthy talked up a sports activities betting accomplice for affliate ESPN however now, based on sources, it appears DraftKings is about to land the gig. [Image: Shutterstock.com]

Groundbreaking deal

A Bloomberg scoop has revealed a “massive new partnership” is imminent between one of many US’s largest sports activities betting corporations and a subsidiary of one of many world’s best-loved manufacturers.

reportedly near-done deal

The reportedly near-done deal between DraftKings and Disney sub-brand ESPN noticed the previous’s inventory spike 12% by the shut of Thursday’s market. One of many Bloomberg reporters who broke the story, Ed Hammond, shared information of the possibly seismic deal through Twitter:

Sources clued up on the matter stated the tie-up would give ESPN the chance to capitalize on the legalized sports activities betting growth. Nonetheless, the nameless insiders stopped wanting shedding any mild on the small print of the potential partnership.

If the talks bear fruit, it’ll make a big dent in DraftKings’ financial institution stability, with ESPN reportedly wanting $3bn minimal for a multi-year licensing deal.

Tie-up of the titans

In line with the inside track seen in Bloomberg this week, a spokesperson for Boston-headquartered DraftKings stated the sportsbook model doesn’t expose the specifics of talks it has with different corporations. That stated, the agency did be aware that it has “a fantastic, lengthy standing relationship with ESPN.” Its potential accomplice refused to remark.

Information of the anticipated deal comes lower than a month after Disney CEO Bob Chapek stated that, whereas ESPN would by no means run its personal sportsbook, it was actively looking for a “well-respected third get together” to grow to be its ebook.

Wider repercussions

The potential DraftKings tie-up raises some questions on ESPN’s relationship with its odds supplier Caesars Sportsbook, as sports activities laws author Ryan Butler tweeted:

The information might also give market chief FanDuel pause for thought ought to its nearest rival get entry to ESPN’s substantial viewership, which averaged 1.2 million viewers over two weeks for the US Open alone. FanDuel launched its personal sports activities betting content material platform FanDuel TV in August.



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