DraftKings Inc DKNG shares soared nearly 8.5% in the after-hours trading on the buzz surrounding a large partnership with Walt Disney Co.'s DIS ESPN.
The agreement will allow ESPN to build on the increasingly popular sports-betting segment, according to Bloomberg.
The details of the deal, including its structure, could not be ascertained by Bloomberg, with ESPN refusing to comment on the publication.
DraftKings has a great relationship with ESPN, but they won't comment on talks with other companies, according to Bloomberg.
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Disney CEO Bob Chapek said at the time that the push into betting was driven by the consumer, particularly the younger consumer, that will replenish the sports fans over time. It was reported earlier in the day that an ESPN sports-betting app is already in the works, with Chapek saying we are working very hard on that. According to Bloomberg, ESPN Chair Jimmy Pitaro said that the sports broadcaster wants to eliminate friction for bettors.
Disney has been looking out for a major sports betting partner for ESPN for more than a year. It wants as much as $3 billion for an extended deal, according to Bloomberg. Price Action: On Thursday, DraftKings shares went up 8.5% to $17.41 in extended trading after closing 3.95% lower at $16.04. On the same day, Disney shares fell 0.7% in extended trading to $100.10 after closing 0.4% lower in regular hours, according to data from Benzinga Pro.
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