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DraftKings Scores With New Investments And Hire, Pushing Further Into Media And Content Creation

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DraftKings Scores With New Investments And Hire, Pushing Further Into Media And Content Creation

One of the leading online sports betting companies is pushing further into media and content creation with several acquisitions and a new hire that was announced Monday morning.

What Happened: Brian Angiolet was announced as the new chief media officer for Draftkings Inc (NASDAQ: DKNG). In the newly created role, Angiolet will oversee and optimize content creation and media strategy with a team.

Angiolet previously worked for Verizon Communications Inc (NYSE: VZ) as a senior vice president and chief business officer. Angiolet helped Verizon with digital deals and partnerships including working with the NBA and NFL.

The media hire follows several acquisitions and investment items from the online sports betting company.

DraftKings was one of several companies to participate in a $12.6 million funding round for a new media company, Meadowlark, according to Sportico. The funding round included investments ranging from $500,000 to $2 million from each investor.

Meadowlark was founded by Walt Disney Co (NYSE: DIS) veterans John Skipper and Dan Le Batard, who worked for ESPN. Skipper was the president of ESPN from 2012 to 2017.

Evaluate.market, which is best known as a data calculator for popular NFT company NBA Top Shot, received an investment from VC Drive, the investment arm of DraftKings. Evaluate.market is a startup founded in February to provide data on NBA Top Shot and the company’s site is linked directly on Top Shot.

The investment from DraftKings could be a small one that doesn't materializes into something bigger or could be a way for the company to get involved with DraftKings in the future.

DraftKings announced it was acquiring sports betting media company VSiN two weeks ago. VSiN specializes in sports betting content with more than 18 hours of live media content.

Related Link: What Did Analysts Think Of DraftKings’ Investor Day Presentation

Why It’s Important: DraftKings spent $475 million on sales and marketing in the last fiscal year. By DraftKings owning its content, it could be a cheaper long-term vehicle for accruing customers, Axios said. Sources told Axios that DraftKings could push for additional media acquisitions.

There is continued momentum in partnerships and acquisitions for sports media companies, which could continue to increase with DraftKings push.

Penn National Gaming, Inc (NASDAQ: PENN) acquired a 36% stake in Barstool Sports last year, valuing the media company at $450 million.

In the highly competitive sports betting market, companies continue to spend money to acquire potential customers. DraftKings could be acquiring customers with investments and also improving its long-term financial outlook. 

Price Action: Shares of DraftKings are up 2.09% to $59.24 on Tuesday at market close.

(Photo: DraftKings)

 

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