DraftKings, Inc. (DKNG 1.53%) strengthened its portfolio of sports-media partnerships today with a deal giving it the rights to distribute the podcast and radio show of sports journalist Dan Le Batard. The deal comes with a minimum price tag of $50 million and could cost more, according to sources who spoke anonymously with The Wall Street Journal.
The rights obtained cover television, radio, and internet distribution, giving DraftKings the ability to sell downstream broadcasting rights to other media outlets. The other way the sports-betting and fantasy-sports platform plans to make money on the partnership, The Washington Post reports, is through inclusion of sportsbook data derived from DraftKings on Le Batard's various shows. Le Batard's company Meadowlark is also planning to develop programming centering on sports wagering and DraftKings.
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The deal is one of several major moves involving DraftKings branching out out into sports-related media. Less than a week ago, it inked a deal with DISH Network (DISH +0.00%) to launch several new, branded channels, including DraftKings Basketball, DraftKings Football, and DraftKings Baseball. These arrangements continue to suffer from a somewhat clunky interface, however, in which bets still need to be placed through the DraftKings app on a separate device rather than through the television itself.
Despite its initiatives, DraftKings may be yielding its second-place position in the explosively growing U.S. sports-betting arena to BetMGM, the sports-gambling platform of MGM Resorts International (NYSE: MGM). Nevertheless, some analysis firms, such as Needham, still see tremendous upside potential for DraftKings in the coming years.
