Major players, including Caesars and Wynn Resorts Ltd., have slashed their marketing spending amid ongoing losses in the business.Īs a company known for wholesome family characters like Mickey Mouse and Snow White, Disney has long shunned gambling. Penn Entertainment Inc., parent of the Barstool Sportsbook, has lost more than half of its value, for example. Since then, the stock market has reconsidered valuations for sports betting operators. “We know that sports fans are craving not just more sports betting content, but they’re craving the ability to actually place bets in a seamless fashion from their online digital sports experiences,” Pitaro said.ĭisney has been searching for a major sports betting partner for ESPN for more than a year, seeking as much as $3 billion for an extended deal. In a recent interview, ESPN Chairman Jimmy Pitaro told Bloomberg that the sports media giant wants to “eliminate friction” for bettors. Disney also acquired a stake in DraftKings as part of its acquisition of Fox’s entertainment assets in 2019. where links to the sportsbooks are integrated into ESPN’s website. The broadcaster has betting-related shows such as Daily Wager and marketing deals with DraftKings and Caesars Entertainment Inc. Many TV networks have seen a flood of ad dollars from sportsbooks that are competing to sign up bettors.ĮSPN has already invested heavily in sports gambling, though it has steered clear of taking actual bets. Media companies are looking for ways to cash in as more states legalize sports betting. A spokesperson for DraftKings said it doesn’t discuss conversations it has with other companies, while noting it has “a great, long standing relationship with ESPN.” “Licensing EPSN’s brand to a sports book and integrating bet odds in broadcasts could help both companies widen their audiences.”ĮSPN declined to comment. New York time.Ī tie-up between the two companies “makes strategic sense,” said Bloomberg Intelligence analysts Brian Egger and Geetha Ranganathan. The stock has fallen about 39% so far this year, valuing the company around $7.5 billion. DraftKings shares rose as much as 8.8% on Friday, defying a broader market slump.
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