Walt Disney Company’s Investment into US Fantasy Sports Operator DraftKings, Puts the Company at a $900 Million Evaluation
A $250 million dollar investment into DraftKings made by Walt Disney Entertainment Corp. puts the fantasy sports operator at a $900 million evaluation according to The Wall Street Journal. The relationship between Walt Disney and DraftKings gives the allowance needed for DraftKings to explore more advertising opportunities.
Daily fantasy sports competitors is a tout market to be in for subscribers, therefore having a backed investor such as Disney Co. the market space needed for the new advertisements will be there. In return for the Disney investment, DraftKings has been said to spend roughly $500 million on advertising on ESPN’s platforms over the next several years.
“Expanding our exclusive partnership with DraftKings will bring new and exciting ways for fans, particularly younger fans, to play daily fantasy baseball, MLB Advanced Media (MLBAM) executive vice-president business, Kenny Gersh, said. DraftKings has established itself as a trusted leader through a high quality fan experience in a rapidly changing space and we are happy to continue to have them on board.”
Although, online gambling is illegal in most states with only a few legalizing online betting activities Disney claims to continue protecting the image of the state of Florida despite investing in a daily fantasy company that could possibly be banned in all 50 states the proposed federal online gaming ban goes into effect.
Disney isn’t the only big company to invest with DraftKings; earlier funding includes The Raine Group, Redpoint Ventures, GGV Capital and Atlas Venture. Comcast is also throwing its hat into the digital media growth with an investment into a rival company, FanDuel Inc., currently occupying top position as one of the largest players in the space.
DraftKings is a USA based company that is located in Boston, Massachusetts. They have offer paid contests to win real money, daily leagues, they are legal in the USA and pays more than $1 billion in prizes every year.
“Two years ago, MLB and DraftKings signed the first league deal in daily fantasy history, and we are excited to deepen that ground-breaking relationship through this new, league wide, exclusive partnership. MLB has long been at the forefront of embracing new technologies to create superior fan experiences, and DraftKings couldn’t be happier to partner to continue that tradition of innovation.” – Jason Robins, Chief Executive Officer of DraftKings