Bloomberg, a business news agency, reported overnight that there is a potential partnership in the works related to sports betting. This news caused a brief 14% increase in DraftKings’ shares during after-hours trading, reaching $18.26 per share compared to $16.04 prior to the announcement. The share price has since settled at $17.45 per share, which is 8.79% higher than the closing price.
There has been ongoing speculation about Disney’s interest in the rapidly growing US sports betting market. CEO Bob Chapek hinted at this during the fourth quarter earnings call in November 2021. He emphasized ESPN as the ideal platform for sports betting, stating that extensive research has been conducted to determine the impact on both the ESPN and Disney brands. Chapek highlighted the changing perceptions of gambling and the significant interest among sports fans under the age of 30.
During the second quarter earnings call in August 2022, Chapek mentioned ongoing discussions with various platforms, specifically focusing on the sports betting vertical. He expressed the importance of fulfilling the needs of sports fans and the possibility of announcing a partnership in the future to access the revenue stream associated with sports betting.
Chapek further revealed at a Disney’s D23 fan event in September that there have been over 100 inquiries regarding a potential sports betting venture. This level of interest indicates the potential value and appeal of such a partnership for Disney.
