Just a few days into life as a company listed on a major US exchange,…
Posted on: April 27, 2021, 12:11h.
Final up to date on: April 27, 2021, 03:37h.
Todd Shriber Learn Extra
DraftKings (NASDAQ:DKNG) continues shifting additional into the media panorama, asserting in the present day it reached a content material distribution settlement with Meadowlark Media. Meadowlark Media is the proprietor of Dan Le Batard’s community of exhibits.
Podcast host Dan LeBatard pictured throughout a present above. DraftKings is partnering with him to succeed in extra bettors. (Picture: Sporting Information)
Monetary phrases of the settlement, which additionally contains monetization and sponsorship features, weren’t disclosed. However unidentified sources advised The Wall Avenue Journal the sportsbook operator is doling out $50 million for the pact with Meadowlark.
Boston-based DraftKings will distribute The Dan Le Batard Present with Stugotz and the Le Batard & Pals Community to a wide range of radio and tv stations, in addition to digital and social media platforms.
DraftKings can also be gaining rights to distribute Le Batard’s podcast, which averages 10 million to 12 million downloads, for 3 years. The goal is to generate income off these distribution rights whereas offering one other avenue for promoting and shopper engagement. The Le Batard suite of exhibits will sport DraftKings’ odds, betting knowledge, and broader sportsbook and every day fantasy sports activities (DFS) info.
Meadowlark Deal A part of Broader Media Push
The Meadowlark pact extends a busy tempo of dealmaking for DraftKings, significantly within the media area.
Final month, the gaming firm revealed its buy of Vegas Sports activities Data Community (VSiN). The operator subsequently employed former Verizon government Brian Angiolet to supervise media technique. DraftKings additionally launched a channel on the SLING TV streaming service after reaching an analogous take care of DISH Community.
Earlier this month, DraftKings stated it’s shopping for Israel-based Blue Ribbon Software program, a supplier of world jackpot and gamification providers to be used with jackpot promotions.
In March, the DFS supplier offered $1.15 billion price of convertible notes, with analysts claiming the proceeds from that transaction may very well be used for acquisitions, significantly within the media area. That speculation is being validated.
Bullish on DraftKings Inventory
To not be misplaced within the hoopla surrounding the Meadowlark settlement is that Wall Avenue stays keen on DraftKings inventory regardless of latest struggles.
Right now, Needham analyst Bernie McTernan initiated protection of the gaming fairness with a “purchase” score and an $81 worth goal. That suggests upside of about 37 % from the April 26 shut.
We see DKNG as a pacesetter within the rising North America on-line playing market, a $35B market alternative,” stated the analyst in a be aware to shoppers.
“Regardless of blended ends in New York, we see the present regulatory atmosphere as supportive, which ought to result in a big progress in laws, a key purpose our ’22 and ’23 estimates are above consensus. We see a 3:1 risk-reward in our bull case vs bear case targets, and importantly envision a better likelihood of our bull case enjoying out vs our bear case.”
Translation: McTernan says in a extremely bullish situation, DraftKings may soar to $150.
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