DraftKings partners with Dan Le Batard to reach more punters, Wall Street remain bullish
DraftKings continues moving further into the media sector with a content distribution deal with Meadowlark Media.
Dan Le Batard is a sports radio host based in Miami
Meadowlark Media is the owner of Dan Le Batard’s network of shows. Financial terms of the agreement weren’t disclosed but sources reveals that DraftKings is doling out $50 million for the pact.
DraftKings will distribute “The Dan Le Batard Show with Stugotz” and the “Le Batard & Friends Network” to a variety of radio and television stations, as well as digital and social media platforms.
The sportsbook operator is also gaining rights to distribute Le Batard’s podcast, which averages 10 million to 12 million downloads, for three years. The target is to generate revenue of those distribution rights while offering another avenue for advertising and client engagement.
The Le Batard suite of shows will display DraftKings’ odds, betting data, broader sportsbook and daily fantasy sports information.
Wall Street remain bullish on DraftKings despite recent struggles
Needham analyst Bernie McTernan initiated coverage of the gaming equity with a “buy” rating and an $81 price target.
“We see DraftKings stock as a leader in the emerging North America online gambling market, a $35 billion market opportunity,” said the analyst in a note to clients.
“Despite mixed results in New York, we see the current regulatory environment as supportive, which should lead to a significant growth in legislation, a key reason our ’22 and ’23 estimates are above consensus.”
“We see a 3:1 risk-reward in our bull case vs bear case targets, and importantly envision a higher probability of our bull case playing out vs our bear case.”
Editing by Rachel Hu
