DraftKings (DKNG) - Get DraftKings Inc. Report agreed to pay at least $50 million over three years to distribute a sports and pop culture podcast from former ESPN (DIS) - Get The Walt Disney Company Report host Dan Le Batard.
The Boston sports-gambling company will make money on the deal by selling advertising and sub-licensing the podcast to radio stations and other audio providers, The Wall Street Journal reported.
"If we can build an audience and engage sports fans through content, then we will be able to bring other opportunities, like betting, like fantasy sports, like casino games," DraftKings Chief Business Officer Ezra Kucharz told the Journal.
Le Batard's podcast averages between 10 million and 12 million monthly downloads. It's part of Meadowlark Media, a sports-media startup founded by Le Batard and former ESPN President John Skipper.
DraftKings' move into podcasts comes as it looks to expand its footprint. Two weeks ago, DraftKings was chosen as one of the official gambling partners of the National Football League.
Last month, DraftKings reached a deal to acquire the Vegas Sports Information Network, a sports-betting media company with on-screen hosts like Brent Musburger. Terms weren't disclosed.
Shares of DraftKings are higher Tuesday as well, after Needham started covering the sports-betting company with a buy rating and $81 price target. The Investment firm also added DraftKings to its Conviction List.
Needham says DraftKings is positioned as a leader in the North America online gambling market.
"Despite mixed results in New York, we see the currently regulatory environment as supportive, which should lead to a significant growth in legislation, a key reason our '22 and '23 estimates are above consensus," analyst McTernan said.
DraftKings shares at last check were 0.7% higher at $59.65.