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@thomasswitzer
Thomas Switzer
Restaurant owner, diversifying investments
10 following3 followers
DraftKings falls -10% on new threat for sports gambling market share from ESPN-Penn partnership
$DKNG is one of the leading sports gambling stocks.

ESPN just announced they are taking a large step into the online betting world.

Penn Entertainment announced that it has signed a 10-year deal with ESPN. Penn will rebrand its sportsbook — currently named after Barstool — to ESPN Bet.

Do we think that the "strategic partner" that $DIS wanted for ESPN will be $PENN?
post media

I think it's a move that reeks of two desperate parties trying to save the ship. Espn thought they could just be a media partner and not get directly involved, and they saw the market quickly consolidate behind DK and FD, who now don't need espn for eyeballs. Penn bought barstool in an attempt to strategic partner and build an espn style content/gaming beast for millenials, and it never took off, probably largely bc portnoy is such a polarizing figure. So they tossed him aside and threw in with the house of mouse, but I think they both missed the peak timing to gain market share, and they'll always be another "also ran". Who knows, I could be talking out of my kiester!
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