Sports betting operator DraftKings is reportedly angling to acquire sports media portal Bleacher Report to ensure a captive audience for its betting come-ons.
On Tuesday, Front Office Sports’ Michael McCarthy reported that DraftKings had “explored potentially acquiring” Bleacher Report, citing ‘industry sources.’ A DraftKings spokesman offered McCarthy the standard non-denial denial that the company “speaks to a variety of companies regarding various matters in the normal course of business” but wouldn’t discuss specifics of any of these discussions.
Turner Sports, which acquired Bleacher Report in 2012 for $175m, was slightly more specific, saying Bleacher Report “is not for sale and there is no truth to this misguided speculation.” However, McCarthy suggested Turner’s parent AT&T could override Turner’s reticence as a way to help meet AT&T’s goal of selling $10b worth of assets this year to help pay down its $147b debt load.
The apparent model for DraftKings’ interest in Bleacher Report is casino operator Penn National Gaming’s recent acquisition of a 36% stake in Bleacher’s rival Barstool Sports. That deal cost PNG $163m in cash and shares, but PNG – which is developing a bespoke betting app that will bear the Barstool brand – is betting big on selling Barstool’s audience on the wonders of legal wagering.