Sports betting media frenzy drives up stocks
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The sports betting content frenzy is heating up, as operators continue looking for ways to own content — a far more efficient long-term vehicle for acquiring customers than traditional paid marketing.
Driving the news: Two weeks after acquiring sports betting network VSiN (Vegas Stats & Information Network) for ~$100 million, DraftKings has hired its first-ever chief media officer, Axios' Sara Fischer reports.
- DraftKings has also talked about a potential deal with Action Network, the subscription sports betting publisher that lets users track their bets, two sources tell Axios.
- I'm hearing a deal for Action Network could exceed $300 million — and that DraftKings isn't the only suitor.
Flashback: Last year, Penn National Gaming bought a 36% stake in Barstool Sports for $163 million in the hopes that Barstool's brand, audience and content expertise would give them a leg up.
- Investors bought in, with Penn's stock up 628% over the past year, compared to 316% for DraftKings, 195% for MGM and 121% for Flutter (owner of FanDuel).
In related news ... ESPN will debut its first sports betting-focused NBA broadcast tonight (Nets vs. 76ers, 7pm ET). ESPN will carry the traditional telecast, while ESPN2 and ESPN+ will have an alternate presentation driven by sports betting content.
