Date posted: April 27, 2021, 12:11 pm
Last updated: April 27, 2021, 03:37 h.
DraftKings (NASDAQ: DKNG) continues to burst into the media landscape, announcing today that it has entered into a content distribution agreement with Meadowlark Media. Meadowlark Media is the owner of Dan Le Batard's exhibition network.
The financial terms of the contract, which also include aspects of monetization and sponsorship, were not disclosed. But unidentified sources said The Wall Street Journal the bookmaker is spending $ 50 million for the Meadowlark pact.
Boston-based DraftKings will spread the word Dan Le Batard Show with Stugotz and Le Batard & Friends Network on various radio and TV stations as well as digital and social media platforms.
DraftKings also gains distribution rights to the Le Batard podcast, which averages 10 million to 12 million downloads over three years. The goal is to generate revenue from these distribution rights while providing a different means of advertising and customer engagement. The Le Batard program suite will include DraftKings odds, betting data, and more extensive information on sports betting and Daily Fantasy Sports (DFS).
Meadowlark Deal is part of Broader Media Push
The Meadowlark Pact expands DraftKings' intense transaction pace, particularly in the media space.
Last month, the gaming company revealed that it had purchased the Vegas Sports Information Network (VSiN). The operator then hired former Verizon director Brian Angiolet to oversee the media strategy. DraftKings also launched a channel on SLING TV's streaming service following a similar deal with DISH Network.
Earlier this month, DraftKings announced that it was purchasing Israeli Blue Ribbon Software, a provider of global jackpot and gamification services for use in the jackpot promotion.
In March, provider DFS sold $ 1. 15 billion convertible bonds, and analysts say the proceeds from this deal could be used for acquisitions, especially in the media space. This hypothesis is being verified.
Bulls on DraftKings stocks
It is impossible to get lost in the confusion around the Meadowlark deal as Wall Street continues to enjoy DraftKings stock despite recent struggles.
Today Needham analyst Bernie McTernan launched an equity game coverage with a "buy" rating with a target price of $ 81. This is an increase of about 37 percent from April 26 close.
DKNG is a leader in the emerging online gambling market in North America, $ 35 B market opportunity, " said the analyst in a note to customers.
“Despite the mixed results in New York, we see the current regulatory environment as favorable which should lead to a significant increase in legislation which is the main reason for our 22 and 23 estimates are above consensus. We see a 3: 1 risk-reward in our bull case compared to the bear case and importantly we imagine a higher probability of our bull case than our bear case. "
Translation: McTernan says that in a highly stubborn scenario, DraftKings could go up to $ 150.