DraftKings loses its unique ESPN advert deal
Issues maintain getting worse for DraftKings, the embattled day by day fantasy sports activities website. Not solely is it presently beneath investigation (or already banned) by a variety of state lawyer generals for violating on-line playing statutes and dropping cost processing companions, Yahoo Finance reported on Tuesday that it is dropping a deal to be the unique every day fantasy advertiser on ESPN.
This deal, which was inked in June — after a beforehand-reported funding by Disney did not materialize — made DraftKings “the official every day fantasy sports activities providing throughout ESPN’s platforms” together with “integration into digital properties and tv programming.” The exclusivity clause kicked in initially of January, however now it is already executed.
Not solely that, Twenty-First Century Fox Inc. additionally revealed that it’s devaluing its $one hundred sixty million funding in DraftKings by a whopping 60 %. Fox purchased eleven % of the corporate again in July. At the moment DraftKings was on the verge of elevating $500 million in funding and was valued at roughly $2 billion. That each one modified as soon as the varied investigations into violations of state playing legal guidelines started. In mild of these investigations, Fox minimize the quantity it is prepared to offer by $ninety five million “based mostly on info regarding DraftKings’ present valuation in a current financing transaction.” Whereas the information is dangerous for DraftKings right here within the states, the corporate is hedging its bets by increasing abroad to the UK the place playing on sports activities is not simply authorized, it is actively inspired.