Dave Portnoy, Barstool Sports Could Return To Sports Betting With DraftKings Deal: Report
Portfolio Pulse from Chris Katje
Barstool Sports, founded by Dave Portnoy, may re-enter sports betting through a potential deal with DraftKings Inc (DKNG) after being sold back to Portnoy by PENN Entertainment (PENN). The deal with DraftKings would be a marketing partnership, promoting DraftKings odds and referring customers. The deal can't be finalized until after Super Bowl LVIII due to a lock-up agreement from the divestiture from PENN. PENN took an $850-million write-off on its Barstool acquisition and has since partnered with ESPN Bet, which is seeing initial success. DraftKings shares hit new 52-week highs, while PENN shares also saw an increase.
January 24, 2024 | 6:28 pm
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NEUTRAL IMPACT
Flutter Entertainment's FanDuel, owned by PDYPY, continues to hold one of the top two market share positions in the online sports betting sector.
FanDuel's established market position is acknowledged, but the article does not provide new information that would likely impact PDYPY's stock in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
PENN Entertainment sold Barstool Sports back to Dave Portnoy and took an $850-million write-off on the acquisition. PENN's shares saw a slight increase despite the write-off.
While PENN took a significant write-off on the Barstool acquisition, the slight increase in share price suggests a neutral short-term impact as investors may be focusing on the success of the ESPN Bet partnership.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Walt Disney Company's ESPN Bet brand, licensed to PENN Entertainment, has seen strong initial success, including a third-place market share finish in Pennsylvania.
The success of ESPN Bet could reflect positively on Disney's strategic licensing decisions, potentially having a positive short-term impact on DIS shares.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
DraftKings Inc may enter a marketing partnership with Barstool Sports, which could boost its customer base and market share in sports betting.
The potential partnership with Barstool Sports could enhance DraftKings' visibility and customer referrals, likely leading to increased market share and revenue, which is positive for the stock in the short term.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90