DraftKings, FanDuel Reportedly Bidding for The Athletic
DraftKings (NASDAQ:DKNG) and competitor FanDuel are among the companies reportedly bidding for The Athletic after talks with other media outlets fell apart.
The Athletic is a subscription-based sports media entity backed past investors including Courtside Ventures, Founders Fund and Powerhouse Washington and is seeking a valuation of at to the lowest degree $750 million, according to The Information, which bust the tidings of the gaming companies connexion the frazzle for the San Francisco-based company.
Launched in 2016 past Alex Mather and Robert Adam Hansmann, The Athletic covers sports in 47 Second Earl of Guilford American cities and the UK. a yr ago, the keep company topped the i million subscribers and it’s been rumored to be a takeover direct for much of this year.
In March, conjecture surfaced that The Athletic was discussing a merger with Axios and that the final result of that matrimony would experience been the combined entity going public via a dealings with a special design acquisition company (SPAC), but those talks drop apart. In June, it was revealed the sports media property was holding talks with the New House of York Times, but those negotiations were also scrapped.
DraftKings, FanDuel Are Sensible Suitors
DraftKings and FanDuel, a building block of UK-based Flutter Entertainment (OTC:PDYPY), both take a leak for practical bidders for The Athletic because sportsbook operators are eagerly diving into media partnerships and deals as avenues for attracting and retaining clients.
In January, Macquarie Research forecast to a greater extent than $30 billion worth of iGaming and sports wagering revenue past 2030, all attributable to manipulator relationships with media firms.
For its part, DraftKings is combat-ready in media deal-making. The Boston-based gaming accompany purchased Vegas Sports Information Network (VSiN) inward March. group A month later, it proclaimed a $50 million investiture in Meadowlark Media. Meadowlark Media is the possessor of Dan Le Batard’s electronic network of shows. The accompany was fastened to speculation surrounding Score Media & Gaming, which was in the end acquired past competition William Penn National Gaming (NASDAQ:PENN).
Speaking of Penn, Barstool Sports founder David Portnoy said his company held talks with DraftKings prior to agreeing to a sell with the casino manipulator inward January 2020. DraftKings also reportedly made a execute at The Action Network, which was purchased by Danish betting analytics provider Better Collective for $240 million.
Big Valuation Increase, MGM Involvement
The Athletic seeking a valuation of $750 meg implies the companionship is worth 50 percent to a greater extent today than it was in 2020. Commanding that toll mark is a different matter because it’s believed the media fellowship isn’t turn a profitable and is burning cash.
Last year, the media solid raised $50 gazillion in jeopardize funding, valuing it at $500 million. Bedrock Capital, Founders Fund, and histrion Saint Matthew McConaughey participated inwards that funding round.
Another point of involvement is that the sports media prop has a partnership with BetMGM though it’s not solve if MGM Resorts (NYSE:MGM) and Entain — BetMGM’s operators — are mulling a lead at The Athletic. BetMGM also has a media business deal with Yahoo! Sports. To date, the gaming companion hasn’t pursued verbatim media acquisitions as hold some of its rivals.
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