According to Reuters, ESPN is close to signing a deal with DraftKings that will promote legalized sports betting through its services. This comes as the sports network has been searching for a partner to enter the sports betting market with.
While ESPN and DraftKings are both refusing to comment on the matter, the latter did note it already has an ongoing relationship with the Disney (NYSE:DIS)-owned broadcasting network.
Adding to that connection, Disney already holds a stake in DraftKings. However, it only has that investment due to its purchase of Twenty-First Century Fox’s assets in 2019. Even so, that could be enough to warrant partnering ESPN with the sports betting platform.
Finer Details of the Deal
Inside sources claim the ESPN deal could have a value of $3 billion. In addition to that, they say that such an agreement would result in DraftKings renaming its sportsbook to include ESPN in the title.
Today’s reports line up with previous comments made by Disney CEO Bob Chapek. He once said ESPN wants to work with a partner to develop a sportsbook. Chapek notes this is due to Disney never being interested in developing its own sportsbook.
DKNG stock is up 3.2% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.