DraftKings rise after ESPN deal announcement

The elevator-to-entrance, designed to resemble a tunnel entering a stadium, is depicted at the new DraftKings office in Boston on March 25, 2019.

David L. Ryan | Boston Globe via Getty Image

Shares of DraftKings saw a spike on Monday after the sports gaming company announced an agreement with sports entertainment giant ESPN.

As part of the agreement, DraftKings will be the exclusive provider of daily fantasy games and a co-exclusive partner for the gambling link-out of ESPN. According to the announcement, DraftKings content will be integrated into ESPN’s digital offerings and studio shows.

DraftKings stock rose more than 12% after the announcement. The stock was slightly negative for the session around noon before the news. Financial terms of the deal were not disclosed.

CEO Jason Robbins said in a release, “We look forward to showcasing DraftKings’ daily fantasy content and offerings for this collaboration, while also further visibility and mainstream adoption of our regulated sports betting products.”

DraftKings shares have now risen by more than 160% since the merger went public in April. This benefit has come despite postponing major US sporting events during the height of the epidemic ban.

The last major move in the stock came earlier this month when it named Michael Jordan as special advisor to the board of directors.

Disney-owned ESPN has broadcast rights to most major American sports, including the NBA and NFL’s Monday Night Football. Last weekend American sportsbooks were in high demand for betting, which saw the return of NFL and playoff games for the NFL and NHL.


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