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Online sports betting operator DraftKings announced its first acquisition since becoming a public company.
The acquired company is a multi-platform broadcast and content company that delivers sports betting news and data to fans across the U.S. VSiN is the first sports media company dedicated specifically to the sports betting industry, offering more than 18 hours of live daily content each day along with a 24/7 live stream. The company’s content is on streaming providers such as SlingTV, fuboTV, Xfinity and several regional sports networks.
Founded in 2017, VSiN is led by CEO Brian Musberger. The nephew of legendary sportscaster Brent Musberger, he founded the company with brother Trent Musberger, Bill Adee, Stephan Shelanski and Dave Berg. His uncle, who left ESPN in 2017, joined the company after six decades in the industry.
No acquisition price was listed Tuesday. DraftKings ended 2020 with $1.8 billion in cash and recently raised an additional $1 billion.
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Why It’s Important: DraftKings said Tuesday morning that the acquisition will let the company build out its content capabilities and increase its audience.
DraftKings is seeking to keep the editorial independence of VSiN and allow the company to run under the current leadership.
“In addition to its brand equity among sports bettors and engaging talent roster, VSiN also has an established infrastructure that DraftKings can immediately help expand,” DraftKings CEO Jason Robins said.
The acquisition could help add customers to the DraftKings sports betting platform with a direct connection with VSiN fans who are interested in placing wagers. The deal could also permits DraftKings to fill programming slots for its own media partners, as pointed out by Sportico.
DraftKings has online sports betting operations in 14 states and plans to continue expansion into newly legalized territories.
Guidance from DraftKings calls for revenue to hit a range of $900 million to $1 billion in fiscal 2021.
DKNG Price Action: Shares of DraftKings are up 3.88% to $60.46 Tuesday morning.
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