DraftKings Shares Explode on ESPN Deal

Shares of DraftKings were soaring on Monday as Wall Street learned that the company had scored a deal with ESPN.

DraftKings announced that it has entered into a multi-year agreement with ESPN to become a co-exclusive sportsbook link-out provider and exclusive daily fantasy sports provider of the media giant. According to the company’s press release, links across ESPN digital platforms will connect fans to DraftKings’ products and services.

As part of the agreement, DraftKings will now be able to integrate its products and offerings across ESPN’s digital platforms and will also power existing and future ESPN studio shows with dedicated segments for promotion, beginning with daily fantasy.

Financial terms of the deal were not disclosed.

ESPN, which is owned by Disney, holds broadcast rights to most of the major U.S. sports, including the NBA and the NFL’s Monday Night Football.

“ESPN helped revolutionize the 24/7 sports news cycle and continues to be the go-to source for many fans today on the latest and largest sports stories,” said Jason Robins, Co-Founder, Chairman and Chief Executive Officer of DraftKings.

“We look forward to this collaboration to exclusively showcase DraftKings’ daily fantasy content and offerings while also advancing further visibility and mainstream adoption of our regulated sports betting products.”

“Sports betting is quickly becoming endemic to the overall experience of the sports fan,” said Mark Walker, Senior Vice President of Business Development & Innovation, ESPN. “To us, that means greater opportunities to innovate and deliver the best and most seamless experience for fans, which will ultimately expand ESPN’s brand and audience and increase engagement. It is an industry that we will continue to actively pursue as it grows and evolves.”

Shares of DraftKings have seen gains of over 160% since going public through a merger in April. The stock jumped more than 12% following the ESPN announcement.

DraftKings also recently named Michael Jordan as a special advisor to the board of directors.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.