DraftKings Dreaming of Streaming Acquisition, Says Analyst

For now, DraftKings (NASDAQ:DKNG) is primarily viewed as an online sports betting company, but it’s made its plans to follow an omni-channel, vertically structured go-ahead unmortgaged and that could eventually include a streaming entertainment acquisition, according to ane analyst.

In a recent mention to clients, Robert Oppenheimer net psychoanalyst Jed Weary Willie said DraftKings has ambitions that lie beyond online sports wagering and those include a possible metabolism into a broader sports entertainment outfit with multiple revenue sources.

We check DKNG making a larger force into streaming, where they can position the sports volume experience into users’ homes and integrate sports analytics content,” said the analyst.

The Boston-based companionship is making crystalise its spirit to be a player inwards the media landscape. Last month, it signed a $50 billion sell with Meadowlark Media, the owner of Dan Le Batard’s web of shows. Prior to that, it acquired Vegas Sports Information Network (VSiN) and hired former Verizon executive director Brian Angiolet to tally its media arm.

DraftKings, Streaming Practical Idea

DraftKings recently launched a communication channel on the SLING TV streaming divine service after notching a similar conformity with DISH Network so its potentiality over-the-top (OTT) ambitions aren’t far flung.

Plus, the virtual multichannel picture programming distributors byplay (vMVPD) manufacture provides the added allure of revenue well out diversification. Currently, online sports wagering, cyberspace casinos and day-by-day fantasise sports (DFS) are the primary election drivers of DraftKings’ cover line

However, the firstly II are to a great extent dependent on political and regulatory outcomes. Once beloved, DraftKings stockpile has recently been pounded, shedding 30.38 percent for the month ending May 13 as investors hypothesise the company faces difficultness entering the New York market place and may non be able to capture into Florida if sports betting is permitted in that state.

Compounding those woes, gaming legislation of late died inwards Texas. Those scenarios may reassert DraftKings’ desire to pushing further into entertainment.

With a streaming deal, the companionship could “create II or iii additional revenue streams they currently don’t have got with an meshed user base,” said Kelly.

Possible Partners

The Robert Oppenheimer analyst doesn’t advert specific streaming candidates DraftKings could purchase, but he does tone heavily costs are mired inwards either buying a dedicated OTT sports provider or building single from the run aground up.

With sportsbook ambitions of its possess and possible synergies with DraftKings inward the nascent, but opportunity-laden in-game betting market, fuboTV (NYSE:FUBO) could work for a logical direct for the suitor, but that’s simply speculation at this point.

What is clean-cut is that with $3 one thousand million inward immediate payment and an fast-growing report for making deals, it wouldn’t live surprising to check DraftKings go in the streaming blank at some point. It’s a thing of how that ledger entry occurs and how a great deal the gaming keep company has to pogy come out to make water it happen.