DraftKings Isn't Slowing Down
DraftKings has been one of the hottest stocks this year since it went public via a merger with a SPAC in April. Despite sports mostly halted as a result of the coronavirus, investors have still found reason to bet on the sports betting giant.
DraftKings announced yesterday it struck a multi-year agreement with Turner Sports to become the exclusive sportsbook and daily fantasy sports provider to select Turner Sports and Bleacher Report properties, excluding NBA programming as Turner Sports has a deal with rival FanDuel for NBA content.
Sports betting lines and daily fantasy content from DraftKings will appear on Turner Sports telecasts as well as Bleacher Report digital channels and the B/R app. The partnership is a big win as Turner Sports' television coverage includes Major League Baseball, ELEAGUE and the March Madness tournament, which is one of the largest sporting events of the year.
"Regulated betting is quickly becoming a fixture of modern sports entertainment, and this collaboration with Turner Sports further scales the reach of our products and content to engage fans," DraftKings Chief Business Officer Ezra Kucharz said. "Turner Sports platforms provide exceptional content as they continually captivate sports audiences."
The deal with Turner Sports is just the latest in a string of deals DraftKings has signed recently to expand its reach.
Last month DraftKings announced Michael Jordan would join the company as a special advisor to the board of directors and take an equity interest in the company. Jordan will provide DraftKings with guidance and strategic advice on key business initiatives.
"Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur," DraftKings co-founder and CEO Jason Robins said. "The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team."
Besides the Turner Sports partnership and Jordan announcement, DraftKings also recently announced a multi-year deal with ESPN to become a co-exclusive sportsbook link-out provider and exclusive daily fantasy sports provider. The deal means links on ESPN will now redirect to DraftKings' products and services.
DraftKings is also increasingly striking deals with individual sports franchises. Since the beginning of September, DraftKings has struck agreements to become the Official Sports Betting Partner of the Philadelphia Eagles, New York Giants and Chicago Cubs.
Just as investors are pouring money into shares of DraftKings, it also appears bettors are rushing to place bets in droves as professional sports leagues have resumed play in recent months.
Sports reporter Darren Rovell tweeted yesterday that New Jersey set a new record in September after taking in $748.5 million in sports bets, a jump of 68% from last September's then record $445 million.
Maybe Mark Walker, Senior Vice President of Business Development & Innovation at ESPN said it best, when he said "Sports betting is quickly becoming endemic to the overall experience of the sports fan."
IMF sees debt reaching 100% of GDP. The International Monetary Fund said the response by governments to fight Covid-19 could push public debt to close to 100% of GDP for the first time. The IMF anticipates government budget deficits to increase to 12.7% of GDP in 2021 from 3.9% this year. "What we see is a one off, jump up of debt in 2020, then stabilization after 2021, and even a slight downward trend in 2025," IMF Fiscal Affairs Director Vitor Gaspar said to Reuters.
Walmart CEO really wants TikTok. Walmart CEO Doug McMillon said the company is interested in TikTok because he sees it as a "discovery opportunity" to reach more consumers. "If you're watching a TikTok video and somebody's got a piece of apparel or an item on it that you really like, what if you could just quickly purchase that item?" McMillon said. "That's what we're seeing happen in countries around the world. And it's intriguing to us, and we would like to be part of it." Walmart must still get approval to proceed with its tentative agreement to acquire a 7.5% stake in TikTok's U.S. operations.
Snapchat introduces music feature. In a move to compete with TikTok and Instagram's Reels feature, Snapchat will now let users add music to their snaps. The feature is currently only available for iOS users as Snapchat didn't say when it will be available on Android devices. When users receive a snap with music, they can swipe for the song's details as well as play it through streaming platforms such as Spotify, Apple Music and SoundCloud.
Stripe eyes Africa. U.S. payments startup Stripe disclosed it has acquired Nigerian fintech startup Paystack as it looks to expand in the quickly growing African market in a deal reportedly worth around $200 million. "The African internet economy is expanding quickly, with online commerce in the region growing 21% year-over-year, 75% faster than the global average," Stripe said. "In order to help increase Africa's online GDP, Stripe has entered into an agreement to acquire Paystack."
Peloton recalls pedals. Peloton has issued a recall for pedals on bikes sold between July 2013 and May 2016 after receiving 120 reports of pedal breakages and 16 reports of injuries. The recall is said to affect about 27,000 bikes. "There is no greater priority than the safety and well-being of Peloton members," Peloton told CNBC. "This recall only affects members who still have their out-of-warranty original pedals on the affected bikes sold in the specific time period."