DraftKings, FanDuel reportedly submit bids on The Athletic
The sports media platform is reportedly seeking a $750m valuation.
Reports have emerged that both DraftKings and FanDuel have submitted bids to purchase The Athletic, a subscription-based sports media platform. Backed by the investment groups Courtside Ventures, Founders Fund and Powerhouse Capital, The Athletic is seeking a valuation of $750m.
Originally launched in 2016, The Athletic covers sports in 47 cities across North America as well as in the UK.
The Athletic has already shown signs that it is keen to sell. Over the last year, it has held talks with both the New York Times and Axios to try to negotiate a sale. Neither was successful. In September, it hired the investment bank LionTree to help facilitate the sale.
While The Athletic last year celebrated its one-millionth subscriber, the San Fransisco-based company has been unprofitable for two years, with 2020 seeing a $41m loss and 2019 a $54m loss. In 2021, it has been predicted that the company will see $77m in revenue alongside $35m in net losses.
Into this mix come DraftKings and FanDuel. Both betting companies have a considerable war chest of funds. DraftKings reported Q2 revenue growth to the tune of 297%, a whopping year-over-year growth of nearly $300m, and just last month placed an ultimately unsuccessful $22bn bid on Entain.
FanDuel, on the other hand, has a parent company – UK-based Flutter Entertainment – which boasted $902m in revenue over the first half of 2021 and is anticipating that its US business will be turning a profit by 2023.
A media company is not a bad asset for a sportsbook to have, something which has become abundantly clear in recent years as gambling operators have sought out media partners in an effort to attract new clientele. DraftKings, for instance as already purchased Vegas Sports Information Network in addition to having invested $50m into Meadowlark Media.
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