Millions of Dollars in DraftKings Shares Owned by Disney
A report from Legal Sports Report reveals that Disney now owns millions of dollars in DraftKings shares. DraftKings became a publicly-traded company in April, after a merger with SBTech. The company offers sports-betting contests on a daily and weekly basis.
Disney’s Ownership of DraftKings Shares
The merger reportedly did not bring a change in ownership for DraftKings, nor did it change the company vision. This acquisition helped the company to go public, according to Legal Sports Report.
The latest reports show that The Walt Disney Company owns 18.43 million shares of the fantasy sports company’s stock. This indicates that Disney is a passive investor and not in a position to influence change. However, Disney’s investment in DraftKings is currently valued at over $364 million.
This undertaking resulted from Disney’s purchase of 21st Century Fox. The acquisition took place in March of 2019 and allowed Disney to feature 21st Century Fox content on the Disney+ streaming platform.
Disney and the Sports Industry
Disney has been heavily involved in the sports industry for years and owns ESPN, which is in a partnership with DraftKings. This brings the relationship full-circle, though Disney has expressed that they do not foresee themselves becoming involved in the gambling world.
Because Disney is a passive investor with the company, they will not be actively involved with the company’s operations. They are also not able to invest in DraftKings competitors. Disney’s ownership of DraftKings shares equals a 6% stake in the company and includes voting power.
As a result, it will be interesting to see where this turn of events leads. As Disney proceeds to acquire more companies, they are shaping the entertainment industry in remarkable ways. Now, with investment in sports betting and fantasy sports, a new set of possibilities arise.
What do you think? Does this mean anything for the evolution of the Walt Disney Company? Let us know!
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