DraftKings Loses Disney: Looking to Raise Another $250 Million
(Gambling911.com Fantasy Sports Wire) – DraftKings.com, the Boston-based Daily Fantasy Sports company considered second largest in the world, has entered into a lucrative marketing deal with ESPN, however, that sports channel’s parent company, Disney, has opted not to invest in the company.
Disney had talked about pumping money into DraftKings back in April. The Daily Fantasy Sports firm is looking for another $250 million from potential investors. An exact valuation of DraftKings is not yet determined. Disney’s possible investment in DraftKings had been expected to value the company at about $900 million.
“People are knocking on their doors to give them money at this point, so there’s no shortage of willing investors,” said Adam Krejcik, a digital games analyst at Eilers Research.
The ESPN deal is likely to attract a substantial number of folks to DraftKings while second tier sites hope to capitalize from Daily Fantasy Sports players looking for value and greater odds of winning. - Aaron Goldstein, Gambling911.com
