Disney investing 250 million in DraftKings

[GrumpyFan]

This has been reported in several news outlets.

Walt Disney Co. is investing $250 million in online fantasy sports business DraftKings Inc., valuing the company at roughly $900 million, people familiar with the matter say.

The Boston startup lets fans play fantasy sports with real money at stake. They can do so on a per-game basis rather than committing to manage teams for an entire season.

It’s an area of digital media that’s rapidly growing and attracting attention from some of the biggest media companies. Comcast Corp.’s venture arm, for example, backs a rival company, FanDuel Inc., which is the biggest player in the space.

In return for Disney’s investment, DraftKings has committed to spend large sums of advertising dollars – just north of $500 million – on ESPN’s platforms in coming years, the people said. That provision is a major attraction of the deal for Disney.

Can somebody explain this to me and why Disney would be interested in them? It just doesn't seem like something that would be in their wheelhouse.

 

[Frankie The Beer]

This has been reported in several news outlets.



Can somebody explain this to me and why Disney would be interested in them? It just doesn't seem like something that would be in their wheelhouse.

Think about it.........

ESPN, your one stop destination for all your one day fantasy sports needs.

 

[GrumpyFan]

I get the tie to sports, but the "gaming" or gambling aspect to this makes me wonder.
Not that I'm against that kind of thing, it's just not something I personally care about, but I just have to wonder if they're wading off into unknown territory, reaching beyond their normal stable of products and familiarity.