DraftKings, FanDuel Reportedly Bidding for The Athletic

DraftKings, FanDuel Reportedly Bidding for The Athletic

Posted on: November one, 2021, twelve:11h.&nbsp

Last up to date on: November 1, 2021, 12:11h.

DraftKings (NASDAQ:DKNG) and rival FanDuel are amongst the firms reportedly bidding for The Athletic after talks with other media outlets fell apart.

The Athletic
The Athletic co-founders Alex Mather, left, and Adam Hansmann. Their business is rumored to a takeover target. (Picture: Axios)

The Athletic is a subscription-based mostly sports media entity backed by traders including Courtside Ventures, Founders Fund and Powerhouse Capital and is searching for a valuation of at least $750 million, according to The Details, which broke the news of the gaming organizations joining the fray for the San Francisco-based business.

Launched in 2016 by Alex Mather and Adam Hansmann, The Athletic covers sports activities in 47 North American cities and the Uk. A 12 months ago, the company topped the one million subscribers and it is been rumored to be a takeover target for much of this year.

In March, speculation surfaced that The Athletic was discussing a merger with Axios and that the result of that marriage would have been the combined entity going public by way of a transaction with a specific goal acquisition organization (SPAC), but those talks fell apart. In June, it was exposed the sports activities media house was holding talks with the New York Times, but people negotiations had been also scrapped.

DraftKings, FanDuel Are Wise Suitors

DraftKings and FanDuel, a unit of Uk-based mostly Flutter Entertainment (OTC:PDYPY), the two make for sensible bidders for The Athletic because sportsbook operators are eagerly diving into media partnerships and discounts as avenues for attracting and retaining clientele.

In January, Macquarie Investigation forecast more than $30 billion really worth of iGaming and sports activities wagering revenue by 2030, all attributable to operator relationships with media firms.

For its portion, DraftKings is lively in media deal-generating. The Boston-based mostly gaming company purchased Vegas Sports Data Network (VSiN) in March. A month later on, it announced a $50 million investment in Meadowlark Media. Meadowlark Media is the proprietor of Dan Le Batard’s network of exhibits. The organization was tied to speculation surrounding Score Media &amp Gaming, which was in the long run acquired by rival Penn National Gaming (NASDAQ:PENN).

Speaking of Penn, Barstool Sports founder David Portnoy stated his business held talks with DraftKings prior to agreeing to a deal with the casino operator in January 2020. DraftKings also reportedly manufactured a run at The Action Network, which was bought by Danish betting analytics provider Greater Collective for $240 million.

Huge Valuation Improve, MGM Involvement

The Athletic seeking a valuation of $750 million implies the firm is really worth 50 percent much more nowadays than it was in 2020. Commanding that cost tag is a different matter since it’s believed the media organization isn’t turning a rewarding and is burning funds.

Final yr, the media firm raised $50 million in venture funding, valuing it at $500 million. Bedrock Capital, Founders Fund, and actor Matthew McConaughey participated in that funding round.

One more stage of interest is that the sports media home has a partnership with BetMGM even though it is not clear if MGM Resorts (NYSE:MGM) and Entain — BetMGM’s operators — are mulling a run at The Athletic. BetMGM also has a media deal with Yahoo! Sports. To date, the gaming organization hasn’t pursued direct media acquisitions as have some of its rivals.

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