On the afternoon of Wednesday, DraftKings experienced a notable uptick, reaching its highest level since late 2021. According to reports, the prominent online sports betting platform is in the final stages of negotiating a deal with Barstool Sports.
The news led to a substantial rise in DKNG stock, although it ultimately fell slightly below a potential buy point by the close of the day.
DraftKings x Barstool Deal
DraftKings is reportedly in advanced discussions regarding a sports betting arrangement with Barstool Sports, the media company founded by David Portnoy, according to reports from Sportico.
The proposed agreement outlines a traditional marketing partnership, wherein Barstool would actively promote DraftKings’ odds. Despite directing customers to the sportsbook, Barstool does not intend to extend its brand to any specific sportsbook or betting app.
DraftKings is in talks for a multiyear deal with Barstool, involving an annual payment in the “low eight figures.” Sources familiar with the matter reveal that Barstool cannot conclude the betting deal until after the Super Bowl on Feb. 11 due to a lockup following its recent separation from Penn Entertainment (PENN).
Barstool Back to it’s Roots
Barstool’s roots include betting, dating back to its beginnings in 2003 as a free weekly betting and fantasy pamphlet distributed by Portnoy.
While gambling advice and picks continue to be integral to Barstool’s content, currently, there’s no sponsor to highlight, and the company isn’t benefiting from guiding its audience to any specific sportsbook.
DKNG Stock Peaks
During Wednesday afternoon, DKNG stock witnessed a surge to 40, reaching its peak levels since November 2021, according to reports from MarketSmith.
Despite this significant increase, DraftKings encountered a pullback, concluding just below a 38.97 buy point, forming an atypical double-bottom base. The buy zone, extending 5% beyond the buy point, spans up to 40.91.
