In order to enhance its market share and presence, Disney Co (NYSE:DIS) has decided to invest in fantasy sports business. As per the reports, Disney has invested $250 million in DraftKings, a fantasy website. People familiar with this matter say that Disney has valued this company as much as $900 million.
Insights On The Matter:
The world of online fantasy games has come far ahead from the point it started. DraftKings is a new era online platform that facilitates all the fantasy sports lovers to play exciting games online with real money at stake. The best thing about this website is that users don’t have to own the entire team or play for the entire session. They can invest money at par basis without any future commitment.
DraftKings is a startup company based in Boston area. Technology has been driving the world for many years, and the field of online fantasy sports is something that media companies from all over the world want to cater. There are not many companies in this field, which is quite fascinated for Walt Disney as it can take enough time to establish itself in this field.
It’s a win-win situation for DraftKings as well as Walt Disney. While the latter has decided to invest $250 million, DraftKings has also agreed to spend over $500 million of advertising dollars. As per the reports, the company will invest this sum on ESPN platform in the coming years. Along with many other positive points, this provision is a major attraction for Walt Disney in this deal.
It’s a transition period for the fantasy sports ventures. Most of the websites active in this field are putting as much cash as possible to market themselves and acquire subscribers. Experts consider it a good step taken by Walt Disney to strengthen its market position.