DraftKings Acquires Sports Betting Media Company VSiN
Denise Truscello/Getty Images for DraftKings.
As the market share battle for sports books across the country grows, the need to win bettors through content gets more competitive.
DraftKings fired a salvo on Tuesday, announcing that it has acquired Vegas Sports Information Network, also known as VSiN. The media company, which operates out of Las Vegas, was started by longtime broadcaster Brent Musburger and his nephew Brian in 2017, and has approximately 75 employees.
No terms were disclosed.
“VSiN creates authentic and credible content that resonates with sports bettors at every level, whether they’re experiences or new to sports betting,” DraftKings CEO and Chairman Jason Robins said, in a statement. “VSiN also has an established infrastructure that DraftKings can immediately help expand, in the hopes of adding value to consumers who are looking to become more knowledgeable about sports betting.”
DraftKings stock was up 1% on the news in the early moments of the market open on Tuesday, after losing 8.5% in value on news that online sports betting in New York for 2021 was on the ropes.
“We are incrementally positive on the acquisition as we believe it positions DraftKings to further build out its content capabilities to a betting centric content consumer, make a broader push into streaming, deepen their presence in Las Vegas and create unique betting products integrated with VSiN content and personalities similar to Barstool Sportsbooks,” a note from market research analyst Oppenheimer said Tuesday morning. Oppenheimer has DraftKings as an “outperform” with a price target of $80, up nearly 40% from where the stock is today.
Integrating with content is not a new strategy. Penn Gaming famously took equity in Barstool in order to draw in its already established fanbase with lower acquisition costs. FanDuel has signed exclusive sports betting deals with Pat McAfee and Turner analysts Charles Barkley and Kenny Smith.