With today’s release of the Q3 earnings report from The Walt Disney Company, it has been announced that Disney has sold their stake in DraftKings.
- Disney’s Q3 earnings report, which can be seen here, offers the announcement of the sale under the headline of “Other Financial Information” and the subsection of “Other Income (Expense), net.”
- The section reads:
- In the current quarter, the Company recorded a charge of $101 million related to a legal ruling, largely offset by a $90 million gain on its investment in DraftKings, Inc. (DraftKings), which was sold in the current quarter. In the prior-year quarter, the Company recorded a $136 million DraftKings loss to adjust its investment in DraftKings to fair value.
- The news of the sale comes just a day after the announcement that ESPN has entered an agreement with PENN Entertainment to launch ESPN BET, a branded sportsbook for fans in the United States.
- PENN Entertainment will rebrand its current sportsbook and relaunch as ESPN BET, effective this Fall in the 16 legalized betting states where PENN Entertainment is licensed. The rebrand includes the mobile app, website, and mobile website.
- ESPN BET furthers ESPN’s commitment to serve fans by leveraging ESPN’s industry-leading multi-platform reach with the rising product operations and expertise of PENN Entertainment.
- ESPN BET will become ESPN’s exclusive sportsbook, and PENN Entertainment will receive odds attribution, promotional services inclusive of digital product integrations, traditional media and content integrations, and ESPN talent access, among other services that collectively generate maximum fan awareness of ESPN BET.
- During today’s earnings call, Disney CEO Bob Iger commented on the eventual launch of ESPN BET, saying “We’re excited to offer this to the many fans who have long been asking for it.”