ESPN has completed a deal that makes the Boston-based DraftKings the official daily fantasy company of the sports media giant, but it does not include an equity investment by ESPN or parent company Disney in DraftKings. The multiyear deal gives DraftKings an exclusive advertising presence within the fantasy category across ESPN platforms beginning in '16, integrating the company directly into ESPN programming and marking the first-ever large-scale collaboration between a season-long fantasy product and a daily fantasy offering.
Financial terms were not disclosed, but industry sources said prior reports of DraftKings making a mid-nine figure advertising commitment to ESPN were “way off.” Negotiations did occur earlier this year around an equity investment by ESPN and Disney in DraftKings, but the parties ultimately settled instead into an integrated partnership model. DraftKings continues to work on a Series D funding round that would greatly accelerate the company’s progress beyond a $41M Series C round last year, though company officials declined to comment specifically on the status of that effort.
See today’s issue of THE DAILY for more.
