Barstool Sports, recently reacquired by founder Dave Portnoy, is in advanced talks with DraftKings for a wide-ranging sports betting deal. The potential agreement, reported to be in the low eight-figures, has affected the stock prices of both companies, with DraftKings' shares rising by 4% and Penn National Gaming's shares falling by 2% shortly after the news broke. The deal discussions come after Penn National Gaming, which had previously acquired Barstool for $551 million, sold it back to Portnoy for $1 to facilitate a deal with ESPN. Analysts from Oppenheimer, including Jed Kelly who predicts a 14.4% upside potential for DraftKings, are optimistic about the company's prospects, maintaining an outperform rating and a $44 price target on the company's shares.
$DKNG is in advanced talks to secure a deal with Barstool Sports, Sportico reports. "It makes a lot of sense to me," Oppenheimer managing director Jed Kelly says. "Now it's not a game changer for DraftKings by any means, but the deal does make a lot of sense." https://t.co/dk1y4fUmT1
Think I have this right? 1. Barstool sells to PENN for $551M 2. Less than 4 years later, PENN recognizes failure & sells Barstool back to Portnoy for $1 3. Just 6 months after that, Barstool doing 8-figure deal to promote one of PENN's (aka ESPNBet) biggest competitors https://t.co/2Ccc5uZyxa
$DKNG Oppenheimer is bullish on DraftKings DraftKings is on pace to become the daily fantasy sports market leader, says Oppenheimer. Analyst Jed Kelly has an outperform rating and $44 price target on shares, implying 14.4% upside potential since Thursday’s close. Draftkings could…
Report: DraftKings and Barstool Sports close to multi-million-dollar media partnership https://t.co/6wD7ECzz1q https://t.co/ynCFb0CYji
As broken by @novy_williams at @Sportico, Barstool is in "advanced talks" with $DKNG on a "multi-year marketing deal." A quick 🧵on the how, what, and why of the *possible* deal 👇
$DKNG 5 mins after this story: up 4% $PENN 5 mins after this story: down 2% The rumored DraftKings/Barstool deal is reportedly low 8-figures. https://t.co/6lqXttM9NG
This was always the big question... a long-term noncompete seemed unlikely. Given the other elements of the deal, it certainly feels like Penn needed to offload Barstool to get the ESPN deal done, and didn't have much negotiating leverage. https://t.co/XrT6IabH8J
BARSTOOL, $DKNG NEAR SPORTS BETTING DEAL AFTER $PENN LOCK-UP
EXCLUSIVE: @barstoolsports is getting back into betting. Once again under the ownership of founder @daveportnoy11, the media company is in advanced talks on a wide-ranging sports betting deal with DraftKings https://t.co/lUYvWs9ZTs